U.S. restricts Huawei’s access of telecoms components to basic goods

Huawei

As part of its sweeping sanctions on China’s Huawei Technologies Co Ltd, the U.S. has a new protocol on American trade with the Chinese telecoms giant.

The U.S. will now allow Huawei to purchase widely available and non-sensitive telecoms components and microchips.

The U.S had placed a wide ranging ban on Huawei, the world’s largest telecoms company and the second largest maker of smartphones after Korea’s Samsung.

The major bone of contention has been linked to Huawei’s closeness to the Chinese government, its military and intelligence community with a weighty allegation that Huawei could have back doors in its telecoms equipment particularly for it’s 5G next generation telecommunication network.

A top White House aide, National Economic Council chairman Larry Kudlow said on Fox News on Sunday that:

“All that is going to happen is Commerce will grant some additional licenses where there is a general availability.

He added that U.S. microchip firms in particular “are selling products that are widely available from other countries … This not a general amnesty … The national security concerns will remain paramount.”

The deal is part of the agreement reached in a meeting between President Trump and President Xi Jinping at their special summit in Osaka Japan.

However, the new review to the ban which is a slight easing in the ban on Huawei will still mean the Chinese company cannot sell or buy 5G network equipments from American companies. The U.S. has also tried to rally several of its partners to shun all related equipment from Huawei citing that their national security and data might be shared with the Chinese government.