for supply of non-sensitive goods to huawei, the us to issue licenses

For supply of non-sensitive goods to Huawei, the US to issue licenses


According to reports, the US will issue licenses to permitting some of the US corporations to supply non-sensitive items to Huawei as great level officials from two countries to meet this week to the restart trade talks.  Huawei Technologies was one of the world’s telecoms gear manufacturers on the US trade blacklist from May when trade talks among Beijing and Washington broke down. The US states that the company can spy on consumers, which Huawei disagrees with. The banning blocked Huawei from buying components and parts from US companies without US government approval, warning its access to essential technologies likeGoogle Mobile Services.

The US companies can pursue a license for particular products to be exempted from the ban. The US Commerce Department has received around 130 applications from compusanies for permits to sell US goods to Huawei. Government officials advised the US companies to apply for licenses following US President Mr. Donald Trump’s initiate of relief, saying exports to China’s Huawei of non-sensitive goods that are willingly replaced by foreign participants, which would be permitted. Mr. Trump’s management provided the green signal in the last week. To start the approving licenses for American companies to avoid the curbs, citing people familiar with the matter. A US Commerce Department presenter told in Reuter that no proper direction had been granted to the department on issue as of Wednesday. Huawei did not immediately respond to Reuter’s demands for comment.

The licensing results give needed clarity to US companies, which have been looking for guidance since Mr. Trump assured in June to provide relief to firms that did business with china’s Huawei. The change comes as two countries are set to meet this week in Washington for meetings to end their fifteen-month trade war. The pressures mounted after the US administration stretched out its blacklist by tallying 28 Chinese entities, including top AI (artificial intelligence) startups, above human rights concerns. China needs the US side to stop its required sanctions and suppression on Chinese companies with Huawei.

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