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U.S. eases trade restrictions on Huawei with heavy caveats

US to ease Huawei trade restrictions with heavy caveats

Us officials said that the Chinese tech giant will still remain on the entity checklist, but the licenses to trade with the company will be under certain conditions and circumstances.

The list here means if a company is blacklisted in the entity list the company or anything under those company authorities cant unable to sell technology or US companies can’t sell or buy any technology to the company without us government approval. Huawei was placed on the Entity List back in May.

US to ease Huawei trade restrictions with heavy caveats

The White House National Economic Council, Larry Kudlow,  said the US had “opened the door — relaxed a little bit, the licensing needs from the Commerce Office.”  But the US government will not buy any Huawei parts, but they can sell any non-security components according to Reuters.

Maybe the ease of trade restrictions was a reason for the meeting of President Trumps with Chinese President Xi Jinping last month. At the event, Trump also said that the trade relationship with the countries would resume and will reduce additional tariffs that have imposed on china will be paused. The announcement produced the unpleasant implication that the Huawei ban was more driven by the continuing trade conflict than by worries about national security.

US to ease Huawei trade restrictions with heavy caveats

“Products under ‘national security concerns’ unclear”

Actually, there are questions regarding the components or technology pose national security concerns, and which do not. World tech giant Google is one of the top companies those who canceled the technology sales with Huawei. Along with Google, ARM has canceled their contracts.

US corporate giants, as well as Intel and Qualcomm, allegedly lobbied the U.S. government silently to ease the constraints imposed on Huawei-selling businesses. They argued that consumer products such as smartphones and computer servers do not present safety problems in the same manner as the critical infrastructure of hardware. According to Reuters, Huawei allegedly paid US component providers as much as $11 billion in 2018.

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Written by Athul Das

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