U.S. keeps Huawei blacklisted but now allows exceptions

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American companies can now trade with Huawei according to the US, but it must first obtain a license from the government. They only get it when there is no danger to the national security of the Americans.

Huawei is in the middle of the trade war between the US and China. After blocking all US companies to trade with Huawei at the end of May, Trump relaxed its stance at the beginning of this month. American companies can sell their equipment to Huawei. We are talking about equipment that does not pose a major problem for national security, he said after a meeting with his Chinese colleague Xi Jinping at the G20 summit.

Surprisingly, the U.S. Department of Commerce insisted on the trade restrictions that prohibit U.S. companies from doing business with Huawei. This despite a statement by President Trump that the ban would be lifted.

Now the US is creating clarity around Huawei and the blacklist with the corresponding trade ban.

Licenses

Commerce Secretary Wilbur Ros confirms that companies wishing to trade with Huawei must first submit an application for a licence. In order to obtain a license, the company must first prove that there is no danger to national security.

Huawei will continue to be blacklisted after Trump issued an executive order at the end of May for suspected links with the Chinese government.

Larry Kudlow, economic advisor to Trump, stresses that the licensing requirements will only be relaxed for a temporary period. With this, the US is keeping a stick behind the door should the talks with China start to run less smoothly, according to the Financial Times.

According to The Wall Street Journal, Steven Mnuchin, US secretary of the treasury, would strongly motivate American companies to submit a licensing proposal to trade with Huawei again.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.