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U.S eases trade restrictions on Huawei, but the Chinese firm remains blacklisted

By Cookie Monster - on 11 Jul 2019, 1:00am

U.S eases trade restrictions on Huawei, but the Chinese firm remains blacklisted

Contrary to earlier optimisim that the trade ban on Huawei will be lifted, the U.S government is still keeping the Chinese company on the export blacklist which is also known as the Entity List. U.S Commerce Secretary Wilbur Ross shared that the government will "issue licenses where there is no threat to U.S national security". 

“Within those confines we will try to make sure that we don’t just transfer revenue from the U.S. to foreign firms,” said Ross. “Huawei itself remains on the Entity List, and the announcement does not change the scope of items requiring licenses from the Commerce Department, nor the presumption of denial.”

In a separate report, White House economic adviser Larry Kudlow stated that the easing of trade restrictions on Huawei could help Huawei, but it would only be in place for a short time. Kudlow added that Huawei parts, components, systems and 5G-related transactions remain off-limits.

Some chip makers are allowed to resume their businesses with Huawei on a limited basis; if less than 25% of the technology in a chip comes from the U.S, they are technically allowed to sell to Huawei under the current rules.

“We are opening that up for a limited time period,” Kudlow said. “So that’s important and, I guess, does provide some relief to Huawei.” He did not specify how long the relaxed licensing guidelines would be in effect.

Source: Bloomberg, Reuters

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