Huawei’s founder states that the softer ban will not have much impact
Jul 05 2019
Reuters reported that John Sonderman, Deputy Director of the Office of Export Enforcement, sent an email to enforcement staff on Monday to inform agents that they should consider applications by usa firms to sell to Huawei on merit. After all, just a couple of days after Huawei was first placed on the U.S. Commerce Department's Entity List, Google announced that it was cutting ties with the company.
These applications would also be subject to the "presumption of denial" licensing policy applied to blacklisted companies.
Trump and Xi agreed Saturday during the G20 summit in Osaka, Japan to start negotiations on the growing trade war between the two countries, with the question of whether the USA will allow Huawei to do business with American countries one of the issues brought up.
A United States law prohibiting federal agencies from buying Huawei Technologies Co equipment isn't legislative punishment but serves to protect against China gaining a strategic foothold in those agencies' networks, the government said. Well, Huawei was already prepared for the ban, and after the ban, it collaborated with many companies which showed it could go well without Huawei.
As a result of an agreement, Donald Trump had reversed the ban on Huawei.
Lawyers for the US Department of Justice challenged that claim in a filing on Wednesday, saying the law wasn't unconstitutional punishment, but rather the "logical next step" to protect the country and ensure China isn't given "a strategic foothold" in USnetworks. What does this mean for the ban against USA governmental agencies dealing with Huawei?
It is unclear when the department would provide its enforcement staff with additional guidance, based on Trump's promises, and how that might alter the likelihood of obtaining licenses. On Tuesday, a White House trade adviser minimized what the administration had agreed to, saying the USA will "allow the sale of chips to Huawei and these are lower tech items, which do not impact national security whatsoever".
"Selling chips to Huawei, a small amount of chips - less than $1 billion a year - in the short run is small in the scheme of things", Navarro said.
The US has been engaged in a global campaign to block Huawei from so-called 5G communications networks, calling the company a security threat.
According to Bloomberg, Trump's decision may have been the result of lobbying by the Semiconductor Industry Association, which represents USA chipmakers including Intel, Broadcom and Qualcomm. As per the ban, Huawei is barred from using Android from the development of new phones.
However, he minimized the impact of that measure on Huawei's projects and assured that the company will continue to focus on completing them to guarantee total self-sufficiency.
"If President Trump has in fact bargained away the recent restrictions on Huawei, then we will have to get those restrictions put back in place through legislation", Sen.
Neither the Commerce Department nor Huawei immediately responded to requests for comment.
The case is Huawei Technologies USA Inc. v. U.S., 19-CV-00159, U.S. District Court, Eastern District of Texas (Sherman).