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US gives green light to ‘several’ firms to sell to Huawei

By Rajiv Menon
1 min read
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A Commerce Department spokesman said the agency had granted “narrow licenses to authorize limited and specific activities which do not pose a significant risk to the national security or foreign policy interests of the United States.”

The administration earlier this week said it had extended for another 90 days the full implementation of the sanctions as part of an effort to make a transition easier for Huawei’s US partners. Commerce Secretary Wilbur Ross said any exemptions from the ban would be allowed only for older wireless systems and not for 5G networks, which have raised a range of security concerns in Washington.

President Donald Trump in May effectively barred Huawei from American communications networks after Washington found the company had violated US sanctions on Iran and attempted to block a subsequent investigation.

The latest 90-day extension “will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark,” Ross said in a statement. “The department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”

Huawei said Monday the decision did nothing to alter the company’s view that Washington has treated it unfairly and called on the Trump administration to remove Huawei from a foreign technology blacklist.

Questions & Answers

Q.

Why is the US allowing some firms to sell to Huawei after previously banning it?

A.

The US Commerce Department has granted narrow licenses for limited, specific activities that do not significantly risk national security or foreign policy interests. These exemptions apply only to older wireless systems, not 5G networks, which remain a security concern for Washington.

Q.

What is the purpose of the 90-day extension on the sanctions against Huawei?

A.

The 90-day extension is to ease the transition for Huawei's US partners and allow carriers to keep serving customers in remote American areas. Commerce Secretary Wilbur Ross stated this prevents those customers from being left without service.

Q.

Why did the US initially ban Huawei from its communications networks?

A.

The US effectively barred Huawei from its communications networks in May after finding the company had violated US sanctions on Iran. Washington also stated that Huawei had attempted to block a subsequent investigation into these violations.

Q.

How has Huawei responded to the US decision to grant limited sales licenses?

A.

Huawei stated the decision does not change its view that Washington has treated it unfairly. The company called on the Trump administration to remove it from the foreign technology blacklist entirely, rather than offering limited exemptions.

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