U.S. to Reduce Restrictions on Huawei Technologies

Must Read

US $10.7m Amsalco Shopping Mall Breaks Ground in Kaduna

The mall dubbed ‘Amsalco Galaxy Mall’ is being constructed at the Murtala Muhammed Square in the heart of Kaduna...

Advancing Economic Growth in Africa; Tony Elumelu Meets with the Presidents of Congo DRC and Rwanda

As the number of African entrepreneurs continues to rise, governments have begun to develop programs and platforms conducive enough...

Performance of all PFAs in Nigeria for July 2019

Have you ever taken time to check out the Returns on Investment (ROI) of the funds in your Retirement...
- Advertisement -
- Advertisement -

The U.S. Commerce Department said on Friday it may soon scale back restrictions on Huawei Technologies after this week’s blacklisting would have made it nearly impossible for the Chinese company to service its existing customers.

The Commerce Department, which had effectively halted Huawei’s ability to buy American-made parts and components, is considering issuing a temporary general license to “prevent the interruption of existing network operations and equipment,” a spokeswoman said.

Potential beneficiaries of the license could, for example, include internet access and mobile phone service providers in thinly populated places such as Wyoming and eastern Oregon that purchased network equipment from Huawei in recent years.

In effect, the Commerce Department would allow Huawei to purchase U.S. goods so it can help existing customers maintain the reliability of networks and equipment, but the Chinese firm still would not be allowed to buy American parts and components to manufacture new products.

The potential rule roll back suggests changes to Huawei’s supply chain may have immediate, far-reaching and unintended consequences.

The blacklisting, officially known as placing Huawei on the Commerce Department’s entity list, was one or two efforts by the Trump administration this week allegedly made in an attempt to thwart national security risks. In an executive order, President Donald Trump also effectively barred the use of its equipment in U.S. telecom networks.

Read:  Huawei unveils foldable Mate X, to launch mid-2019 with 5G

The United States believes Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

The latest Commerce move comes as China has struck a more aggressive tone in its trade war with the United States, suggesting talks between the world’s two largest economies would be meaningless unless Washington changed course.

A spokesman for Huawei, the world’s largest telecommunications equipment maker, did not immediately respond to a request for comment.

Read:  Big Nutrient knowledge gap uncovered by new research

Out of $70 billion Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel Corp and Micron Technology Inc. If the Commerce Department issues the license, U.S. suppliers would still need separate licenses to conduct new business with Huawei, which would be extremely difficult to obtain, the spokeswoman said.

The temporary general license would last for 90 days, she said and would be posted in the Federal Register, just as the rule adding Huawei to the entity list will be published in the government publication on Tuesday.

“The goal is to prevent collateral harm on non-Huawei entities that use their equipment,” said Washington lawyer Kevin Wolf, a former Commerce Department official.

Read:  Huawei Takes 17% Share of Global Smartphone Market in Q2 2019

The entity listing bans Huawei and 68 affiliates in 26 countries from buying American-made goods and technology without licenses that would likely be denied.

The entities list identifies companies believed to be involved in activities contrary to the national security or foreign policy interests of the United States.

In a final rule posted on Thursday, the government tied Huawei’s entity listing to a criminal case pending against the company in Brooklyn, New York.

U.S. prosecutors unsealed the indictment in January accusing the company of engaging in bank fraud to obtain embargoed U.S. goods and services in Iran and to move money out of the country via the international banking system.

Huawei Chief Financial Officer Meng Wanzhou, daughter of the company’s founder, was arrested in Canada in December in connection with the indictment, a move that has led to a three-way diplomatic crisis involving the U.S., China and Canada.

Meng, who was released on bail, remains in Vancouver and is fighting extradition. She has maintained her innocence, and Huawei has entered a plea of not guilty in New York.

Trump injected other considerations into the criminal case after Meng’s arrest when he told Reuters he would intervene if it helped close a trade deal.

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

Latest News

Nigeria’s GDP could easily grow to $1trn by 2023 If we revive these 10 moribund industries

Nigeria’s GDP could easily grow to $1trn by 2023 If we revive these 10 moribund industries(1) Ajaokuta Steel MillNo...

Chijioke Charles Emerges Winner Of Hi-Life Fest 2019 (Photos)

Life Lager, the beer brand renowned for inspiring progress, and for celebrating the culture of the people has added another landmark achievement to its...

British Airways’ reaches a technological milestone

British Airways reached a technological milestone when the 100,000th aircraft was pushed back using a fully automated, remote-controlled Mototok device.Traditionally diesel tugs are used...

Mark Angel Gets His Own Mouka Flora Mattress

Mark Angel best known for the Mark Angel Comedy series, often featuring his child comedian niece, Emmanuella, just received the new Mouka Flora mattress.In...

FCT NSE seeks welfare of Inmates

The Nigerian Society of Engineers (NSE) Maitama Branch, Federal Capital Territory (FCT) has called on government and privileged Nigerians to support inmates serving jail...

More Articles Like This