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There has been a lot of confusion since US President Donald Trump announced that US companies could still deal with Chinese tech giant Huawei. On the one hand, it seemed that Trump had made enough progress in negotiations on trade concessions with Chinese President, Xi Jinping, for the ban to be reversed.
On the other hand, we have heard that US law enforcement officers are being told that they will continue to treat Huawei as a blacklisted company. They were previously blacklisted by the US Department of Commerce, which means that Huawei is prohibited from receiving US-made components without the express permission of the US Department of Commerce.
"A little relaxed"
US Secretary of Commerce Wilbur Ross said earlier that his department would "issue licenses where there would be no threat to US national security." He explained that Chinese society was still on the blacklist; "Huawei itself remains on the list of entities, and the announcement does not change the scope of items requiring a license."
Reuters also reported that the director of the National Economic Council of the White House, Larry Kudlow, reportedly said:
"[The U.S. has] opened the door, somewhat relaxed with the licensing requirements of the Commerce Department. "
He said the US government would allow US companies to sell non-essential security components to Huawei, but the easing of restrictions should be "for a limited period," according to the Financial Times. This could perhaps mean the reimposition of the restrictions if trade negotiations are also taking place south of here.
The statements offer a minimum of clarity to the situation as a whole, with Trump apparently overturning the ban after the trade talks with Xi Jinping at the recent G20 summit in Osaka. This seemed to indicate that the process as a whole was a ploy to leverage current trade tensions between the US and Chinese governments.
However, there are still outstanding issues. What is national security concerns when there are specific components? Does this apply to the licenses for Google's operating system, Android? What about manufacturers like Qualcomm and ARM components? Since the United States has already granted Huawei and the other parties a 90-day stay (effective until Aug. 19) for the purposes of the original ban, we will have to see it.
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