Speaking at the same conference as Ross, Nazak Nikakhtar, Commerce’s assistant secretary for industry and analysis and nominee to lead the department’s Bureau of Industry and Security, said the agency hoped to have decisions soon on export license requests from companies seeking to sell to Huawei. In May, Trump signed an executive order barring US firms from using telecommunications equipment made by companies posing a national security risk.While American chipmakers welcomed Trump’s announcement, many industry and government officials were confused about the new policy.The United States has engaged Beijing in a tit-for-tat trade war over accusations that China steals American intellectual property (IP) and forces US companies to transfer their technology to Chinese firms to gain access to markets.“The actual policy, of what is not going to endanger US security, is not clear,” Washington trade lawyer Doug Jacobson said. “The only way that industry can determine the line is by submitting (license) applications and knowing what types will be approved and which types will be denied.TENACIOUS PURSUIT OF AMERICAN TECHNOLOGYShortly after Huawei was added to the Entity List, the Commerce Department issued a temporary general license allowing the company to buy equipment to maintain existing networks and provide software updates to existing Huawei handsets. However, he opened the door to some approvals.
Industry observers said Ross’ comments lacked the clarity and relief many hoped for after Trump’s announcement. While American chipmakers welcomed Trump’s announcement, many industry and government officials were confused about the new policy.”Separately, White House economic adviser Larry Kudlow told an event hosted by CNBC that relaxed US government restrictions on Huawei could help the technology giant but would only be in place for a limited time. That license expires on Aug.The move, which required the Commerce Department to draw up an enforcement plan, was seen as paving the way to ban US companies from buying from Huawei, at a time when US wireless carriers are looking for partners as they roll out 5G networks. Commerce will “very soon” seek formal comment on that rulemaking, Nikakhtar said. “So that’s important and, I guess, does provide some relief to Huawei.The United States last year passed a law that required Commerce to draft new rules to beef up oversight of certain foundational technology sales abroad. Interim final rules go into effect immediately, even as they seek public comment that could be used to modify regulations going forward.Any further relief granted on Huawei’s entity listing
China Accessories Factory still may not spell the end of troubles for the company.“We are opening that up for a limited time period,” Kudlow said.”That meant some chip companies would be permitted to sell to Huawei, on a limited basis, items generally available on the global market, including from vendors in South Korea, Taiwan and Vietnam, he said.The United States has accused Huawei of stealing American intellectual property and violating Iran sanctions.It also has launched a lobbying effort to persuade US allies to keep Huawei out of next-generation 5G telecommunications infrastructure, citing concerns the company could spy on customers. US parts and components generally cannot be sold to those on the list without special licenses.Trump’s comments came after the United States placed Huawei on the Commerce Department’s so-called Entity List in May over national security concerns.