U.S. reviews export requests to Huawei with 'highest scrutiny': Commerce Dept

Saul Bowman
July 5, 2019

In an e-mail to enforcement staff on Monday, Bureau of Industry and Security Office of Export Enforcement Deputy Director John Sonderman sought to clarify how agents should approach license requests by firms seeking approval to sell to Huawei.

On Wednesday, the USA government announced that it was reviewing applications from U.S. companies that want to export products to China's telecom giants Huawei. "Evaluate the associated license review policy under part 744", adding that regulations that include the Entity List and the "presumption of denial" licensing policy that is applied to blacklisted companies.

Trump on Saturday last week surprised markets by promising Chinese President Xi Jinping (習近平) on the sidelines of the G20 summit in Japan that he would allow USA companies to sell products to Huawei.

Huawei has been the subject of long-running United States national security concerns due to suspected links with the Chinese government and the belief that its equipment could be used for spying - suspicions the company denies.

Chinese tech giant Huawei remains on a tough trade blacklist despite Donald Trump's suggestion that a ban may soon be relaxed, an internal Commerce Department memo says.

Huawei is in an awkward position right now, as the company can't tell for sure whether it is allowed to use Google's Android for new smartphones or not.

The United States hit back against Huawei on Wednesday, asking a federal court in Texas to dismiss the Chinese firm's lawsuit against a U.S. government ban on its products. "Huawei is also willing to continue to buy products from American companies", Mr Ren was quoted as saying.

According to Reuters, the memo was the sole piece of guidance Commerce Department staff had been sent about the president's tweet, sent during the G20 in Japan.

At the G20 meeting, Trump also said that meetings on Huawei would be held shortly.

He stressed that Huawei is confident in its ability to source equipment from other countries if Trump's agreement doesn't pan out.

In May, the Trump administration put Huawei on a banned list citing national security concerns related to its technology for the company's 5G - Fifth Generation - smart devices.

"President Trump's statements are good for American companies".

He said that the company is done with American hostility and will focus on carrying on the job in a more targeted way than before. In case you haven't caught up to date yet, this means that Huawei is prohibited from receiving American-made components without express permission from the U.S. Department of Commerce.

The partial lifting of restrictions on Huawei was a key element of the agreement, which allows expanded sales of USA technology supplies to the Chinese telecommunications giant.

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