The US Department of Commerce allows sales to Huawei, but it is not easy to do so - Photo 1.

The US Department of Commerce allows sales to Huawei, but it is not easy to do so


According to the US Secretary of Commerce Wilbur Ross on Tuesday, the US government will issue licenses to companies seeking to sell products to China's Huawei company without threatening national security. family.

Recently in an effort to resume trade talks with China, US President Donald Trump announced last month that US companies were allowed to sell products to Huawei Technologies, the device manufacturer. The world's largest telecommunications.

Huawei is still on the Entity list

Trump's comments came after the US government put Huawei on the Commerce Department's Entity List in May due to concerns about national security. Generally, US components and parts will not be sold to companies on this list without special licenses.

Although many US chip makers are happy with Mr. Trump's announcement, many industry officials and observers are puzzled about the new policy, asking companies to still need it. Licensed to be sold to Huawei.

Speaking at a conference in Washington, Mr. Ross said Huawei was still on the Entity list, meaning that in order to gain that special license, the company applied must overcome government assumptions about how it works. breaking regulations. In addition, Mr. Ross said, the list of products that require licenses remains unchanged, however, he is also open to a number of approval possibilities.

"In order to enforce the presidential directive in the G20 Summit two weeks ago, the Ministry of Commerce will have to issue licenses without a threat to US national security."Mr. Ross said, referring to Mr. Trump's announcement at a Japan-Japan meeting of leaders.

"In those areas, we will try to ensure that we do not transfer revenue from the US to foreign companies.. "Mr. Ross added.

Lack of clarity in regulation

After Huawei was included in the Entity List, the semiconductor industry lobbied the US government to allow non-sensitive products, which could easily be purchased overseas, for Huawei to argue. that the ban will harm US companies.

The US Department of Commerce allows sales to Huawei, but it is not easy to do so - Photo 2.

Wilbur Ross, US Secretary of Commerce.

Meanwhile, many industry observers argue that Mr. Ross's comments lack clarity and dispel many of the hopes that people had after Mr. Trump's announcement in the G20 conference.

"The real rule, about what is not considered harmful to US security, is unclear. "Commercial lawyer in Washington, Doug Jacobson said:"The only way for the industry to determine this boundary is to apply for a license and then know what types of products will be accepted and which ones will be rejected.. "

White House economic consultant Larry Kudlow said in an event organized by CNBC that the US government's easing of restrictions for Huawei could help the technology giant, but only for a while. limit.

This also means that some chip companies will be allowed to sell to Huawei common products in the global market, including suppliers from Korea, Taiwan and Vietnam.

"We are opening it for a limited time"Mr. Kudlow said."Therefore, it is very important and I think it will bring some compensation to Huawei. "He did not specify how long these loosening instructions will take effect.

Refer to Reuters



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