Huawei, the world's largest telecom equipment manufacturer, was listed as an entity by the U.S. Department of Commerce in May. The list prohibits U.S. companies from offering Huawei new U.S. products and services without permission, and such licensing applications are likely to be rejected.
But after meeting with Chinese President Xi Jinping, Trump announced at the end of June that American companies might be able to sell products to Huawei. Recently, U.S. Commerce Secretary Ross said that licenses would be granted for exports of products that do not pose a national security threat.
The reversal of Trump's attitude and the rapid action of the U.S. Department of Commerce suggest that lobbying in the chip industry and political pressure from China are likely to reactivate U.S. corporate sales to Huawei.
Following Ross's speech, two U.S. chipmakers told Reuters they would apply for more licences. The two companies asked for anonymity.
According to Craig Ridgley, a trade compliance consultant in Washington, a customer response management company and a company that simulates cross-sectional radar for Huawei may also submit applications in a few days.
Huahua spent $70 billion in parts purchases in 2018, of which about $11 billion went into the pockets of American companies such as Qualcomm (QCOM.O), Intel (INTC.O) and Meguiar (MU.O).
"Because there is no harm in it, companies will definitely apply as required by the regulations," said Kevin Wolf, a Washington lawyer who worked for the U.S. Department of Commerce.
A spokesman for Huawei said that Huawei should be removed from the entity list completely. It is not enough to relax the restrictions on Huawei's supply from some U.S. suppliers. Huawei did not involve any improper crimes or pose a network security risk to any country, so these restrictions are excessive.
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