US receives 130-plus licence requests to sell to Huawei

The Trump administration has not yet licensed it to sell to blacklisted companies.

On July 4, 2018, the file photo Huawei logo can be seen at the Huawei store in a shopping mall in Beijing.

On July 4, 2018, the file photo Huawei logo can be seen at the Huawei store in a shopping mall in Beijing.
(AP archive)

Nearly two months after the US Department of Commerce announced that some sales would be allowed, three sources received more than 130 applications from companies applying for a license to sell US goods to Huawei Technologies in the United States. Said.

But the Trump administration has not yet granted sales permission to blacklisted companies, said people familiar with the process that told Reuters about an anonymous condition.

The suspension situation coincides with Trump's mixed message in the US-China trade war, which has blurred hopes for a quick decision on a licensed application to sell to Huawei, the world's leading telecommunications equipment manufacturer.

This has resulted in billions of dollars in lost revenue for chip manufacturers, software companies and others in Huawei's US supply chain.

William Reinsch, a former Commerce Department official, said, “Nobody in the office is afraid to make a decision without knowing what (Trump) wants.

Last week, Trump vowed to raise tariffs on China's imports of $ 55 million a few hours after China imposed a new charge of $ 75 billion on US goods.

He eased the mood for China at the G7 Summit on the weekend, thinking he would reach a deal to end the Tat-Tat-Tat war, where the world's two largest economies are hitting the market and hindering growth.

The number of current licensed applications that have not been reported before is well over 50, released by US Commerce Secretary Wilbur Ross in July.

A spokesman for the Department of Commerce said, "An interagency process is currently underway to meter license requests for Huawei and non-US affiliates."

Huawei did not respond to an immediate request for comment, but demanded that the US remove the company from the so-called list of entities and end the "unfair treatment."

Huawei, the world's No. 1 Two smartphone makers were listed as a result of US national security issues in May, when trade negotiations with China were suspended. Unless the vendor gets a special license, the sale of US products is mostly banned by companies on the list unless they overcome a strict investigation.

The United States was trying to persuade the company to spy on its customers and to allow its allies to exclude it from the 5G network. Huawei denies this claim.


To bring China back to the negotiating table at the end of June, Trump promised President Xi Jinping that US companies would allow some sales to Huawei. Huawei spent $ 11 billion last year on US components from US companies such as Intel Corp, Qualcomm and Micron Technology.

Government officials urged US companies to apply for a license under Trump's relief commitment. In July, Ross and Trump promised a timely response.

One of the sources did not delay the review process and noted the complexity of the interagency consultations.

However, the only relief Huawei has seen so far is the August extension of the temporary general license, which allowed US companies to make some exceptions to repair and maintain Huawei's existing handsets and networks.

Derek Scissors, a Chinese expert at the American Enterprise Institute, said a breakthrough in US-China trade negotiations could boost license approval for Huawei next month.

The two trade teams will meet in Washington in September, but no specific date has been disclosed.

According to three Department of Commerce officials, many license requests were reviewed by other agencies, such as the Department of Defense and the Department of Defense.

However, according to three people familiar with this procedure, no standard has yet been set, and no response has been announced as officials wait for green light from Ross and the White House.

The United States is suing Huawei on allegations that Huawei violated US sanctions against Iran.

Huawei chief executive Meng Wanzhou was detained in Vancouver last December on charges of US bank fraud against misleading banks about Iran's business.

Trump insisted that Huawei and Meng could sometimes be included in US trade.

Source: Reuters

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