The U.S. government will issue the license for the American companies to sell products to China’s Huawei that does not pose a national security threat. The Statement was issued by Commerce Secretary Wilbur Ross but he did not clear about the protocols that a product must possess to clear the national security check.
Last week, Donald Trump announced that it will allow the U.S. companies to do business with the world’s largest equipment maker company. The chipmaker companies were more than happy after Trump’s announcement but many of the government officials were confused about the new policy.
Willaim Ross spoke at the annual department conference in Washington. He said the company will on the entity list but the new policy won’t change the scope of the items requiring the license to sell it.
“To implement the president’s G20 summit directive two weeks ago, Commerce will issue licenses where there is no threat to U.S. national security,” Ross said, referring to Trump’s announcement at the meeting of world leaders in Japan. “Within those confines, we will try to make sure that we don’t just transfer revenue from the U.S. to foreign firms,” he said.
Huawei was blacklisted from the U.S. due to the accusations of spying on American intellectual property and working with the Chinese government in the same matter. While the Commerce Department has kept Huawei on reprieval period for 90 days that allows buying products from the U.S. companies to maintain the existing products.
“The actual policy of what is not going to endanger U.S. 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.”
Amid the ban, Trump and President Xi Jinping have agreed to revive negotiations on escalated China-U.S. trade war.