Some Huawei U.S. Distributors Get Commerce Okay to Resume Business, Others Refused

November 20, 2019
Some Huawei U.S. Distributors Get Commerce Okay to Resume Business, Others Refused

The U.S. Department of Commerce has begun authorizing license applications of several vendors to do business with China’s Huawei Technologies Co., partially reopening access to one of U.S. technology’s biggest buyers.

It was not clear which items were approved for sale to the top telecommunications equipment manufacturer in the world. But Huawei Technologies Co Ltd, now the second-largest smartphone maker, has been anxiously awaiting a license for Google’s Alphabet Inc to offer new models for its mobile services. Google also refused to comment.

“We’ve had 290-something requests for specific licenses,” Commerce Secretary Wilbur Ross said in an interview with Fox Business Network late Tuesday. “We’ve now been starting to send out the 20-day intent-to-deny letters and some approvals.”

In May, in an attempt to prohibit U.S. firms from selling goods to China’s largest telecommunications firm, the U.S. added Huawei to what is known as the agency list, which it accuses of being a threat to America’s national security. Huawei rejected those claims.

The listing, which allows American companies to obtain a government license to sell to blacklisted companies has affected the profits of some U.S. businesses and has created doubt as to what their relationship with their Chinese client is going to be forward.

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