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Reuters: US company may be allowed to restart supply to Huawei within 2-4 weeks

Feb 02 64
According to a Reuters report on the 15th, a senior US official revealed that the US government may approve the issuance of a license to re-start supply to Huawei within 2-4 weeks. The report said that this sign indicates that US President Trump’s recent decision to relax restrictions on Huawei may advance rapidly. In May of this year, the US Department of Commerce listed Huawei as an “entity list”, prohibiting US companies from offering products and services to Huawei without a license.

US President Trump announced after meeting with Chinese leaders at the end of June that he agreed to let US companies continue to sell products to Huawei. US Commerce Secretary Ross also said on the 9th that officials will issue licenses to US companies to allow them to sell products and technology to Huawei in the event that US national security is not threatened.

The report mentioned that a senior US official made a clear statement to a US manufacturer representative at a meeting of the Ministry of Commerce on the 11th that the US company may obtain relevant licenses within 2-4 weeks.

The unnamed manufacturer said that the official did not specify the criteria for licensing, but she believes that these criteria will be determined on a case-by-case basis, at least initially, as the Ministry of Commerce will seek to form a broader opinion.

When asked about the comments of the senior official, a US Department of Commerce spokesman said that the agency "is currently evaluating all licenses (applications) and determining how to meet the best national security interests in the United States."

Eric Hirschhorn, the former US Deputy Secretary of Commerce, also said that the problem facing government officials who are now reviewing licenses (applications) is that they do not know how the government (policy) will develop. "The policy two minutes ago may not be a policy after two minutes," he said.

The report also mentioned that after Ross made the above statement, two US chip manufacturers supplying Huawei recently told Reuters that they would apply for more licenses. According to Craig Riegley, a trade compliance consultant in Washington, a customer response management company and a company that simulates cross-section radar for Huawei may also submit applications within a few days.

“Because there is no harm, companies will definitely submit applications in accordance with regulations,” said Kevin Wolf, a Washington lawyer who worked in the US Department of Commerce.

In addition, the report also mentioned that not all US companies need to approve their license applications for Huawei. Some US chip makers may not require a license to sell products to Huawei because many of their parts are produced overseas, and the US production is low in content and is outside the scope of US export controls.

Despite this, Ross also said on the 9th that Huawei is still on the "list of entities."

However, a Huawei spokesperson also said that Huawei should be completely removed from the "list of entities". Huawei did not involve any improper crimes, nor did it pose a cybersecurity risk to any country. Therefore, these restrictions are "not to be implemented."