Left Menu
Development News Edition

US may ease restrictions on Huawei to prevent interruption of operations

Devdiscourse News Desk | Updated: 18-05-2019 07:01 IST | Created: 18-05-2019 07:01 IST
US may ease restrictions on Huawei to prevent interruption of operations
Image Credit: ANI

The U.S. Commerce Department said on Friday it may soon scale back restrictions on Huawei Technologies after this week's blacklisting would have made it nearly impossible for the Chinese company to service its existing customers.

The Commerce Department, which had effectively halted Huawei's ability to buy American-made parts and components, is considering issuing a temporary general license to "prevent the interruption of existing network operations and equipment," a spokeswoman said.

Potential beneficiaries of the license could, for example, include internet access and mobile phone service providers in thinly populated places such as Wyoming and eastern Oregon that purchased network equipment from Huawei in recent years.

In effect, the Commerce Department would allow Huawei to purchase U.S. goods so it can help existing customers maintain the reliability of networks and equipment, but the Chinese firm still would not be allowed to buy American parts and components to manufacture new products.

The potential rule roll back suggests changes to Huawei's supply chain may have immediate, far-reaching and unintended consequences.

The blacklisting, officially known as placing Huawei on the Commerce Department's entity list, was one or two efforts by the Trump administration this week allegedly made in an attempt to thwart national security risks. In an executive order, President Donald Trump also effectively barred the use of its equipment in U.S. telecom networks.

The United States believes Huawei's smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

The latest Commerce move comes as China has struck a more aggressive tone in its trade war with the United States, suggesting a resumption of talks between the world's two largest economies would be meaningless unless Washington changed course.

A spokesman for Huawei, the world's largest telecommunications equipment maker, did not immediately respond to a request for comment.

Out of $70 billion Huawei spent on buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel Corp and Micron Technology Inc.

If the Commerce Department issues the license, U.S. suppliers would still need separate licenses to conduct new business with Huawei, which would be extremely difficult to obtain, the spokeswoman said.

The temporary general license would last for 90 days, she said and would be posted in the Federal Register, just as the rule adding Huawei to the entity list will be published in the government publication on Tuesday.

"The goal is to prevent collateral harm on non-Huawei entities that use their equipment," said Washington lawyer Kevin Wolf, a former Commerce Department official.

The entity listing bans Huawei and 68 affiliates in 26 countries from buying American-made goods and technology without licenses that would likely be denied.

The entities list identifies companies believed to be involved in activities contrary to the national security or foreign policy interests of the United States.

In a final rule posted on Thursday, the government tied Huawei's entity listing to a criminal case pending against the company in Brooklyn, New York.

U.S. prosecutors unsealed the indictment in January accusing the company of engaging in bank fraud to obtain embargoed U.S. goods and services in Iran and to move money out of the country via the international banking system.

Huawei Chief Executive Officer Meng Wanzhou, daughter of the company's founder, was arrested in Canada in December in connection with the indictment, a move that has led to a three-way diplomatic crisis involving the U.S., China and Canada.

Meng, who was released on bail, remains in Vancouver and is fighting extradition. She has maintained her innocence, and Huawei has entered a plea of not guilty in New York.

Trump injected other considerations into the criminal case after Meng's arrest when he told Reuters he would intervene if it helped close a trade deal.


TRENDING

OPINION / BLOG / INTERVIEW

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Videos

Latest News

Philippines' task force recommends easing of lockdown in capital

The Philippines coronavirus task force has recommended to President Rodrigo Duterte easing lockdown measures in Manila from June 1, despite the country still reporting some of its highest daily numbers of COVID-19 cases and missing testing ...

Looting erupts during Minneapolis protests over black man's killing by police

Minneapolis Mayor Jacob Frey on Wednesday called on prosecutors to file criminal charges against a white police officer shown on a bystanders video pressing his knee into the neck of a handcuffed African-American man who later died at a hos...

INSIGHT-No way back: Indian workers shun city jobs after lockdown ordeal

By Roli Srivastava and Anuradha Nagaraj MUMBAICHENNAI, May 28 Thomson Reuters Foundation - When power loom operator Lokanath Swain boarded a bus home after a 40-day wait in the Indian textile hub of Surat, he took a silent vow - to never re...

Top campaign advisor says Biden would sanction China over Hong Kong

Joe Biden would sanction China if president for its plan to impose new national security rules on Hong Kong, his campaign said on Wednesday, and accused President Donald Trump of having enabled Beijings curbs on freedoms in the former Briti...

Give Feedback