US tech firms won’t be seeing a resumption in sales to Chinese firm Huawei any time soon.
The WH has plans to stop the issue of licenses which would’ve allowed US firms to resume sales made to Huawei as per a Bloomberg report. China has stopped purchasing American agro products and a currency war is on the cards at the moment. This move comes on the heels of a tariff hike imposed last week by the USA on Chinese-origin goods.
The Commerce Department refused to comment. Secretary Ross stated that his department had received over fifty license applications. Decisions regarding these would be taken this week.
Huawei has unwittingly been caught in the crossfire. In May, it was placed on the Entity List by the USA, which made it mandatory for US firms to have a license before selling goods to it. Huawei was severely hurt by this since it relies on US suppliers like Google and Intel for its smartphone business. US technology companies were also hurt by this move.
They have requested the WH to allow the resumption of sales. A few have found loopholes for restarting shipments to the company. In June, Trump stated that he would relax restrictions, granting requisite licenses to firms whose products don’t pose national security risks. A couple of weeks ago, Trump met with Huawei’s US suppliers who asked for timely licensing from the Commerce Department. American legislators have often raised complaints about Huawei posing national security threats, a claim the company denies. Huawei’s CSO warned that American jobs would take a hit due to this decision.
CSO Purdy had stated that since the USA was known to be vulnerable in cyberspace field, legislators were taking defensive steps. However, these were too restrictive. He warned that Huawei probably wouldn’t be back later, which would hurt American interests.
Intel CEO Swan raised concerns about this situation during a shareholders’ conference call.
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