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Author Topic: U.S. companies cto start shipping supplies to Huawei  (Read 9813 times)

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U.S. companies cto start shipping supplies to Huawei
« on: July 15, 2019, 05:45:28 AM »

Ever since Huawei was placed on the U.S. Commerce Department's Entity List in the middle of May, the company has been unable to officially access its supply chain in the country. As a result, firms like Google, Qualcomm, Intel, U.K. based ARM holdings (which uses American tech in some of its chip designs) and other firms cut their ties with the Chinese phone manufacturer. That led Huawei to quicken the development of its Hongmeng operating system and search for an app storefront for its upcoming phones.

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But on June 29th, after the U.S. and China announced a truce in the trade war between the two countries, U.S. President Donald Trump announced that "U.S. companies can sell their equipment to Huawei. We're talking about equipment where there's no great national security problem with it." But the very next day, White House economic advisor Lawrence Kudlow tempered Trump's statement by saying that Huawei remained on the Entity List. Internal Commerce Department email noted that the company was still "blacklisted" and U.S. tech firms seeking a license to ship supplies to Huawei should expect to be turned down. Both Huawei and members of its U.S. supply chain, who took in a collective $11 billion from Huawei last year, have been utterly confused.

However, it appears that we could finally get some clarification soon. According to Reuters, a senior White House official says that U.S. sales to Huawei could resume in as soon as two weeks. In addition, Reuters was told by two chipmakers that are part of Huawei's American supply chain that they would soon apply for licenses. They made this comment after Commerce Secretary Wilbur Ross said last week that such licenses would be issued in situations where there is no threat to national security. Today's report says that a customer response management company and an outfit that simulates cross-sectional radar for Huawei will each file an application for a license in the coming days. Former Commerce Department official Kevin Wolf, now an attorney, says that "Since thereís no downside, companies are absolutely submitting applications, as required by the regulations."


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