US firms may be allowed to restart Huawei sales in weeks | 2019-07-16

US firms may be allowed to restart Huawei sales in weeks

16 July, 2019 12:00 AM printer

NEW YORK: The US may approve licences for companies to re-start new sales to Huawei in as little as two weeks, according to a senior US official, in a sign President Donald Trump’s recent effort to ease restrictions on the Chinese company could move forward quickly.

Huawei, the world’s largest telecommunications equipment maker, was added to a Commerce Department list in May that prohibits US companies from supplying it with new American-made goods and services unless they obtain licences that will likely be denied, report agencies.

But late last month, after meeting with Chinese president Xi Jinping, Mr Trump announced American firms could sell products to Huawei. And in recent days, Commerce Secretary Wilbur Ross said licenses would be issued where there is no threat to national security.

Mr Trump’s reversal, and rapid implementation by the Commerce Department, suggests chip industry lobbying, coupled with Chinese political pressure, may well reignite US technology sales to Huawei.

Two US chip makers who supply Huawei said in recent days they would apply for more licenses after Mr Ross’ comments. They asked to remain anonymous.

A customer response management company and a firm that simulates cross-sectional radar for Huawei are also likely to file applications in the coming days, according to Craig Ridgley, a trade compliance consultant in Washington.

Out of $70 billion (Dh257.07bn) that Huawei spent buying components in 2018, some $11bn went to US firms including Qualcomm, Intel and Micron Technology.

“Since there’s no downside, companies are absolutely submitting applications, as required by the regulations,” said Washington lawyer Kevin Wolf, a former Commerce Department official.

A Huawei spokesman said “the Entity list restrictions should be removed altogether, rather than have temporary licenses applied for US vendors. Huawei has been found guilty of no relevant wrongdoing and represents no cybersecurity risk to any country so the restrictions are unmerited.