Some US Companies Are Being Licensed To Resume Trading With Huawei

Recently, the US Commerce Department gave Huawei another 90-day temporary license to continue supporting its telco customers in rural America.

The latest reports indicate that some US tech companies are even being issued with licenses to resume trades with Huawei. From the nearly 300 license applications, a quarter of those have been approved.

Another quarter of the total applications have been given notification ‘intent to deny,’ and the remaining half have not been acted upon, according to an official familiar with the matter.

The US Commerce Department official said companies denied approvals have 20 days to appeal before they are locked out officially. The firms affected involve those that deal with the production of communication network equipment.

The winners of the approval have mostly been semi-conductor companies.

The Department said on Wednesday that they are only authorizing “limited and specific activities which do not pose a significant risk to the national security or foreign policy interests of the United States.”

Huawei was added to the so-called Entity list in May, which meant that the company, together with its affiliates, were barred from trading with US tech companies. This was not only a hard pill to swallow by Huawei but also a two-edged sword, which meant the US tech companies were also affected immensely in terms of revenue.

Despite the license approvals for selected US tech companies to resume supplies to Huawei, it does not change Huawei’s inclusion on the department’s “Entity List.”

As per now, the US and China are still struggling to reach a trade agreement. Trump, in the past, has suggested the ban on Huawei eased as part of the larger trade deal. China has hinted that the relief for Huawei being crucial if they have to agree to the trade deal.

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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