- Jul 24, 2021
In the recent trade ban that the Trump government put on Chinese Products, Chinese tech-giant Huawei faced the most impact by being placed in the so-called Entity List because of the threat it supposedly posed to the U.S. national security. The List bans American firms from selling to it without special permission.
On the sidelines of the G20 summit held in Osaka last week, U.S. President Donald Trump promised his Chinese counterpart Xi Jinping that American companies will be allowed to sell products to Huawei Technologies Co Ltd., the world’s largest telecoms equipment maker, and a key U.S. customer.
Despite this recent development, a senior U.S. official reportedly maintained that Huawei should still be treated as blacklisted, in an email to his enforcement staff on Monday.
John Sonderman, Deputy Director of the Office of Export Enforcement, in the Commerce Department’s Bureau of Industry and Security (BIS), stated the applications submitted by firms seeking approval to sell to Huawei should be considered on merit and scanned carefully for language, on the “presumption of denial” licensing policy that is applied to blacklisted companies. It implies strict review, with most licenses reviewed under it not being approved.
This party [Huawei] is on the Entity List. Evaluate the associated license review policy under part 744. – John Sonderman
Moreover, further guidelines provided by BIS should be followed during the evaluation of Huawei-related license applications.
Peter Navarro, the trade adviser of White House, stated that the U.S. would allow the sales of “lower tech” chip to Huawei, ones that don’t pose a threat to national security.
Huawei has viewed Trump’s promise to Xi as capable of affecting American firms positively. According to a Huawei spokesman, “Huawei is also willing to continue to buy products from American companies. But we don’t see much impact on what we are currently doing. We will still focus on doing our own job right.”
Huawei has denied the U.S.’ allegations of the company stealing American intellectual property and violating Iran sanctions, and even spying on customers.