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US may scale back Huawei trade restrictions to help existing customers



The U.S. Commerce Department said on Friday it may soon scale back on Huawei Technologies after this week's blacklisting would have made it almost 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, for example, include internet access and mobile phone service Providers are thinly populated places such as Wyoming and eastern Oregon that have purchased network equipment from Huawei in recent years.

goods so can help existing customers maintain the reliability of networks and equipment, but the Chinese companies would not be allowed to buy American parts and components to manufacture new products. 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 at the Trump administration this week allegedly made in an attempt to secure national security risks. In an executive order, President Donald Trump also effectively applied the use of his equipment in U.S. telecom networks.

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

The latest Commerce move comes as China has struck a more aggressive tone in its trade was with the United States, suggesting a resumption of 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 Out of $ 70 billion Huawei spent for buying components in 201

8, some $ 11 billion went to US firms including Qualcomm, Intel Corp. and Micron Technology

The logo of Huawei Technologies is pictured in front of the German headquarters of the Chinese telecommunications giant in Duesseldorf, Germany, February 18, 2019.

Wolfgang Rattay | Reuters

If the Commerce Department issues the license, U.S. Pat. Suppliers would need separate licenses to conduct new business with Huawei, which would be extremely difficult to obtain, the spokeswoman said.

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.

Huawei's entity listing 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. Huawei's government listing on a criminal case against the company in Brooklyn, New York.

US 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 US, 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 verdict when he told Reuters he would intervene if it helped close a trade deal. ]: Huawei's HQ

– Reuters correction: Rare look inside Chinese smartphone giant, Huawei's HF's Chief Financial Officer.


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