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U.S. companies to resume selling to Huawei | TECH(feed)

Network World | Jul 18, 2019

President Trump reversed his ban on all business transactions between the U.S. and Chinese tech giant Huawei a few weeks ago. Now, some U.S. companies will soon be able to sell their tech to Huawei once again--but not without jumping through a hoop or two. In this episode of TECH(feed), Juliet breaks down which companies will likely be granted licenses to work with Huawei and discusses the future of partnerships between Huawei and the U.S. companies on which it relies.

Copyright © 2019 IDG Communications, Inc.

Hey everyone welcome back to tech feed i’m juliet beauchamp. Remember a few weeks ago when i said the drama between huawei and the u-s was basically over? Well, i’ve got a bit more on that. Stick around.

Before you freak out, no, there hasn’t been a reversal on the reversal of the huawei ban. Quite the opposite, actually… it looks like u-s companies will have the go-ahead to start doing business with huawei in a matter of weeks, according to reuters. Quick recap--president trump banned all business transactions with huawei due to alleged security risks in may and then reversed the ban during trade talks with the president of china at the g-20 summit a few weeks ago. We’ll link previous tech feed episodes about this below in case you missed them.

Anyway--the caveat here is those business can only sell to huawei if it poses no national security threat--so it’s unlikely there will be much business done in regards to 5-g infrastructure. But this is a huge win for chipmakers who sell their wireless and memory chips to huawei. But there’s still some hoops to jump through. For the most part, these companies do need to acquire licenses through the commerce department to sell to huawei. They’ll be approved on a case by case basis at first, and again, there cannot be any sort of national security risk involved. It’s not a free for all on exporting, but it’s certainly a step towards easing business between huawei and the u-s companies it relies on for tech.

And there may be some loopholes here--it’s not entirely clear whether or not u-s companies’ foriegn-made goods are exempt from licensing… again, this is a step towards allowing transactions, but there’s still a lot of questions surrounding the ban and the subsequent reversal. Huawei is pushing for an end to any licensing, saying the company poses no security risk. Pretty doubtful the u-s government is going to buy that one, given the fact that this whole ban started due to security allegations against huawei. And as relations between the u-s and china evolve, i don’t think it’s out of the question to see changes to this licensing process. But honestly, it’s tough to predict whether it’ll get easier or harder for u-s companies to sell to huawei. I’m skeptical.

Thanks for watching this episode of tech feed. If you liked this video be sure to give it a thumbs up and subscribe to our channel. I’m not sure this will be the end of the huawei and united states news, but i want to know what you think. Will this battle ever be over? Let me know in the comments, and we’ll see you next time.
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