US Government to Grant Limited Licenses to American Companies to Resume Supply to Huawei

Posted Wednesday, July 10, 2019 by
Arslan Butt • 1 min read

As US-China trade talks resume officially, the US government plans to issue licenses to American companies to supply their goods to Huawei so long as they are not a threat to national security. While details still remain unclear, this appears to be the first step towards removing Huawei from the US government’s trade blacklist, the Entity List.

At the G20 summit, when US President Trump had called for a truce in the trade war by putting off the next round of tariff hikes, he had also announced that American companies could soon start supplying components to Huawei. Tuesday’s development was confirmed by Commerce Secretary Wilbur Ross, however, he stated that Huawei will continue to remain in the Entity List, at least for some more time.

Ross stated that this move came in response to Trump’s assurances made at the G20 summit, but that the government will grant licenses so long as it doesn’t risk transferring revenue from the US to foreign firms. The US had added Huawei to the Entity List alleging that the Chinese government was using the company’s technology to spy on foreign businesses and citizens.

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