US Govt Will Issue Licenses to Companies for Trading with Huawei

It looks like Huawei will be getting a small reprieve from the US ban soon.

The US government will now issue licenses to companies that want to do business with Huawei, as long as there is no threat to national security. Commerce Secretary Wilbur Ross announced this on Tuesday.

We’re still unsure which American products fall into this category, or whether Huawei can resume working with Google as before. Ross also said that Huawei will remain on the banned Entity List, and the government can still deny a license request if need be.


He further added that the new licensees will have to comply with the previously issued component availability requirements. He restated that the department will only issue licenses after evaluating the potential of national security risks involved.

At a separate event, the director of the White House National Economic Council, Larry Kudlow, said the US had “opened the door — relaxed a bit, the licensing requirements from the Commerce Department.” He said that the US will not purchase all kinds of parts from Huawei and only non-security critical components will be allowed.

We are opening that up for a limited time period. So that’s important and, I guess, does provide some relief to Huawei.

While Huawei is still going to remain on the entity list, this is a positive step towards resuming normal relations and prevent major losses on both sides. From the looks of it, it seems that the whole US-Huawei trade fiasco is going to be cleared up very soon.

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