The U.S. government will issue with licenses to the companies that are seeking selling their products to Chinese firm Huawei Technologies Co Ltd but only in case when there is no harm to the national security in doing so, Commerce Secretary Wilbur Ross said on Tuesday, still leaving industry observers unclear about which products will pass that criterion.
In last month, in move to restore trade talks with China, President Donald Trump commented that American companies would be permitted to sell goods to Huawei, which is the largest telecommunication equipment maker in the world.
Trump’s remarks came after placing Huawei on the so-called Entity List of Commerce Departmentby the United States in May for having national security concerns. Parts and components made by the American firms generally cannot be sold to the companies on the list and require special license for that.
Though chipmaking firms in the United States welcomed Trump’s remarks, but the announcement came to be creating confusion not only among industry observers but also among government officials about how the new policy would work.
Ross, apeaking at a conference in Washington, confirmed that Huawei would continue to be on Entity List, which means the requirement of winning licenses will still be there that rise above an assumption of denial, and said that there will be no change in the scope of items which require licenses.
However, referring to Trump’s remarks at the sidelines of the meeting of world leaders in Japan last month, he cleared the path to some license approvals saying that Commerce Department will issue licenses where there is no risk involve of any threat to national security of the United States for implementation of directives of President at G20 summit two weeks ago.
The semiconductor industry in the United States, after addition of Huawei to the Entity List, remained lobbying the government to allow them to sell Huawei such products which it could easily purchase from firms in other countries and argued that a blanket ban world be harmful to the U.S. firms.