Huawei fans heard the good news that the top Chinese OEM can still do business with American firms. This was after several challenging weeks since Google announced that it’s cutting business with them. To be honest, we expected it would happen and then eventually overturned since the company has been a powerful fixture in the mobile industry. It has already overtaken Apple, now coming in second place after Samsung. It’s been difficult not only for Huawei but also for other tech companies that do business with them. What began as a defense policy bill last year ended as a trade ban. Interestingly, a lot of brands have dropped Huawei but only to take back their decision after some time.
The Trump government has said the other day American companies would still be allowed to sell to Huawei. The good news was shared in Japan at the G20 summit. Trump promised Chinese President Xi Jinping that Huawei could still purchase supplies from American firms.
Now we’re hearing the confusing information Huawei is still blacklisted. Does this mean the ban on sales would be eased? That’s the idea but apparently, Huawei is still on the Entity List. It’s a list that contains companies that cannot buy from American businesses. US firms are not allowed to sell to those in the list without any permission.
Deputy Director of the Office of Export Enforcement John Sonderman shared how agents should approach any license request by companies who want to sell to the Chinese tech giant. The Commerce Department’s Bureau of Industry and Security (BIS) shared applications must be flagged with “This party is on the Entity List. Evaluate the associated license review policy under part 744.” BIS would be evaluating any license applications related to Huawei and so any information from the department must be considered.
On the other hand, Huawei could still purchase products from American brands. More information from the Commerce Department is expected especially on this subject. The enforcement staff needs more guidance so we’ll see if the business will proceed as usual soon.