Frontline | US Department of Commerce relaxes ban on Huawei, but Huawei is still on the list of entities

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On July 9, US time, a statement from the US Department of Commerce website showed that US Commerce Secretary Ross said that for the US companies that trade with Huawei, “in order to implement the president of the G20 summit two weeks ago. Instructed that the Ministry of Commerce will issue licenses without threatening US national security.” But he also pointed out that “within these limits, we must work hard to ensure that revenues are not transferred from the United States to foreign companies.” Moreover, Huawei is still on the list of entities. However, this has somewhat relaxed the restrictions on Huawei’s supply chain. Many Western media such as Reuters, the New York Times, Voice of America, and The Wall Street Journal reported on this. According to the New York Times, Larry Kudlow, director of the White House’s National Economic Council, said at an CNBC event on Tuesday that the United States “opened a door” to a company that sells products to Huawei. – slightly relaxed the licensing requirements of the Ministry of Commerce. After Huawei listed the “list of entities”, the Ministry of Commerce issued a 90-day temporary general license to allow the company to purchase equipment to maintain the existing network and provide software updates for existing Huawei phones. The license will expire on August 19. According to Reuters, after Huawei was included in the list of entities, the semiconductor industry lobbied the US government to require Huawei to easily exclude non-sensitive products purchased from other countries from export bans on the grounds that a comprehensive ban would damage US companies. interest. The New York Times believes that this decision by the US Department of Commerce will bring benefits to US companies such as Qualcomm, Intel, Broadcom, and Google. Huawei will use chips from companies such as Qualcomm and Intel. Its annual sales of 200 million mobile phones are based on Google’s Android system. The New York Times also pointed out that US technology companies have been lobbying the Trump administration because the ban will cut off their big source of income, but there is little hindrance to Huawei’s technological progress, because Huawei can also be from Japan, South Korea or Competitors from other US companies buy relatively less advanced parts. According to Huawei’s Ren Zhengfei’s interview with the French “Opinions” weekly, Ren Zhengfei said that if the friction with the United States continues, more products will be purchased for European manufacturers. In the supply chain, “Some countries don’t sell us parts, both sides will be hurt, maybe our sales will decrease, and they will sell less. Huawei is not a listed company, and it’s not a bad performance, but they released in July. If the financial statements are not good, the stock price will fall. Therefore, both sides have an impact.” Although the ban is relaxed, Reuters also pointed out that many industry and government officials are holding a wait-and-see attitude toward the latest US Department of Commerce. The Reuters report quoted Doug Jacobson, a trade lawyer in Washington, as saying, “Under the premise of not endangering US national security,” the scope of this request is not clear. The industry must figure out this limit and only submit a permit application to try. Only know which ones will be approved and which will be rejected.

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