The Trump Administration is planning to relax the ban that prevents U.S. companies from selling products to Huawei, reports suggest. A limited number of licenses will be issued that permit some U.S. companies to sell “non-sensitive” goods to the Chinese vendor, reports The New York Times.
A national security order issued by the president in May effectively prevented U.S. companies from working with the vendor.
Huawei was added to the U.S. Entity List in May; it includes vendors not allowed to trade with U.S. companies for national security reasons unless approved by the American government.
Huawei was given a reprieve until November to continue trading with the U.S. in order to give partners the opportunity to keep existing networks and equipment functional until alternative arrangements could be made. Recently, government officials confirmed that the president does have the power to force firms out of China — but no such orders have yet been made, reports ZDNet.
Smartphone vendor Huawei has suffered when it comes to purchasing components and materials from U.S. companies. Inclusion on the Entity List, even with a temporary license to continue trade, has thrown the operating system of future handsets in doubt, according to the account.
October 14, 2019
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