Wilbur Ross, the US Commerce Secretary, said in an interview on Sunday that the US companies will be issued licenses to sell their components to China’s tech giant Huawei. He said in an interview with Bloomberg that the license would be issued ‘very shortly’. He said that the US companies sent a lot of requests for the license.
The US government received nearly 260 letters from the companies requesting for approval. Ross added, “That’s a lot of applications – – it’s frankly more than we would’ve thought”. But he warned all the companies which have requested that it even might not get the license as the US government is expected to approve only a few of the requests and give licenses.
Ross said, “Remember too, with Entity Lists, there’s a presumption of denial. So the safe thing for these companies would be to assume denial, even though we will obviously approve quite a few of them”. Actually, Huawei was added in May to the US blacklist. There is a total of 100 companies in the US blacklist, which includes even the Huawei. Moreover, the US government added 28 companies to the blacklist, including Hikvision and Dahua Technology, the world’s two of the largest manufacturers.
The company which has been affected by the trade ban is Google. Huawei right now is not being able to issue new phones with Android OS and Google Apps and will also not be able to update the phones if the temporary license dies. So a permanent license is required for the two companies Google and Huawei, to work back together. Huawei says that last year, it purchased approximately $11 billion American components.
The government ordered Huawei ban because the US government was concerned that China might spy through Huawei phones on Americans. Also, the FCC has banned the people of Americans who receive Universal Service Fund Money not to use Huawei phones. As they fear that China government would use Huawei to spy on American people.
But, the US government has issued a temporary license to trade with Huawei. The purpose is for “maintain and support existing and currently fully operational networks and equipment, including software updates and patches”. The license will end this month, and also Ross says that the new license will be issued by the end of this month.
Ross also said, “We’re in good shape, we’re making good progress, and there’s no natural reason why it couldn’t be. But whether it will slip a little bit, who knows. It’s always possible”. Brad Smith, the American President, said that he does not agree with the restriction of trade to China.
Smith said, “If somebody from the government believes that Windows on a laptop sold by Huawei would create a National Security Risk to the United States, then, of course, that’s something that we want to talk about and think hard about. But we don’t think that is the case”. He also said that they have applied for a license.
Smith added, “Right now, there is not a Chinese competitor in the Philippines operating system space. Is it really in the United States’ economic interest to create not only an incentive but the necessity to go create a honest operating system? Because once it’s created, it will compete with us around the world”. Huawei, on the other hand, says that it does not have any deals with the Chinese government.