Published: Fri, July 05, 2019
Global News | By Blake Casey

USA govt staff told to continue blacklisting Huawei

USA govt staff told to continue blacklisting Huawei

The letter that comes days ahead of US Secretary of State Mike Pompeo's three-day visit to India in June, and the 2019 G20 Summit that has recently concluded in Japan's Osaka, assumes much significance to decide the fate of controversial Chinese gear maker Huawei in India. "So if it is not a national security issue, we are allowing them to sell", Donald Trump said in a statement to the media.

It looks to clear up how its agents should approach license requests by firms seeking approval to sell to Huawei, noting that although all applications should be considered on merit, they should also include the caveat that "This party is on the Entity List". Huawei warned last month that the U.S. ban could cost it $30 billion in lost sales over the next two years. The U.S. tech giant has shown that it will make quick decisions involving Huawei, but why did it not respond to the latest news? Instead, he poured water on what was already a muddy mess.

The China-U.S. trade arrangement that agreed upon lessening the restraints on Chinese company Huawei, have received increased criticism from lawmakers regarding national security apprehensions while there is increased confusion regarding how the agreement may affect Huawei. The lawsuit is separate from the US Commerce Department's recent blacklisting of Huawei, whichrestrictsAmerican companies from doing business with the Chinese firm.

The "presumption of denial" policy is still in place in which most requests are usually denied.

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It didn't help that Trump's top economic advisor Larry Kudlow had an interview with CBS News wherein he said: "What's happening now is simply a loosening up for general merchandise, maybe some additional licenses from [the Department of] Commerce".

In May, president Trump criticized Huawei, describing it as "very risky".

Currently, Huawei is very popular in Europe and is leading in the fight for control of 5G wireless networks which will enable users to surf the Internet much more quickly and could facilitate the development of self-driving vehicles, techniques for performing surgery by remote control and other procedures that it now puts within reach.

This is a blow to Huawei as it's hoping to work with Google so it can use its Android operating system in its future mobile devices. With this last decision, many United States companies can now resume trade operations with the Chinese company. Huawei does design its own chips but uses software supplied by US firms to do so. It's been hard not only for Huawei but also for other tech companies that do business with them. So as expected, Huawei will have little or no effect over the softer ban.

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