U.S. Begins Granting Exemptions to Huawei Blacklist -- Update
November 20 2019 - 1:11PM
Dow Jones News
By Katy Stech Ferek
WASHINGTON -- The Trump administration has given permission to
some U.S. suppliers to Huawei Technologies Co. to resume shipping
to the Chinese telecom giant, easing export restrictions while U.S.
negotiators struggle to wrap up the first stage of a trade deal,
the Commerce Department confirmed Wednesday.
Commerce officials put Huawei on an export blacklist in May,
citing national security concerns. U.S. officials have warned that
Huawei products could be used to spy on or disrupt
telecommunications networks, which the telecom giant denies.
But President Trump, meeting with Chinese President Xi Jinping
on the sidelines of the Group of 20 summit in Osaka, Japan, on June
29, agreed to ease the blacklisting for cases that didn't involve
national security.
In remarks made late Tuesday on Fox Business Network, Commerce
Secretary Wilbur Ross said he has begun to authorize some of those
license applications.
"We've now been starting to send out the 20-day intent-to-deny
letters and some approvals," he said.
The Wall Street Journal reported last month that the White House
had signed off on special licenses for some U.S. companies to do
some business Huawei.
The blacklist cut the equipment maker off from some U.S. chip
makers and other companies that sent $11 billion of components to
Huawei last year. Some chip makers cut revenue forecasts, even as
some determined they could still sell Huawei certain products made
outside the U.S. without violating export controls.
The Trump administration's blacklisting of Huawei cast a deep
shadow over the trade negotiations. Offering a reprieve through the
licenses granted Wednesday is seen as constructive for negotiators
seeking to remove some irritants during trade talks and potentially
achieve a limited "phase one" deal that Mr. Trump outlined last
month.
"I read Huawei as, 'I want to keep the door open for a deal,' so
it's positive right now," said Derek Scissors, a trade expert at
the American Enterprise Institute who has advised the Trump
administration. "This is a goodwill gesture to the Chinese that
matters to them in managing their own hawk-dove debate.
Huawei couldn't immediately be reached for comment.
In an interview with the Journal earlier this month, Huawei
Chief Executive Ren Zhengfei said dismissed Washington's campaign
against it as ineffective, saying it had found other suppliers to
make up for the loss of U.S. chips and other components.
Write to Katy Stech Ferek at katherine.stech@wsj.com
(END) Dow Jones Newswires
November 20, 2019 12:56 ET (17:56 GMT)
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