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Trump administration ready to ease ban on sales to Huawei

By Yana Berman
October 10, 2019, 1:34 PM GMT
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    Partial lifting of sanctions may ease talks on trade war

    Trump administration ready to ease ban on sales to Huawei

    The US government is planning to allow some companies to trade with the controversial Chinese Telecoms company Huawei, The New York Timesreports.

    The Trump administration banned Huawei from supplying telecommunication gear to US firms, and vice versa, in May, a decision supported by leading tech companies such as Google. The company is seen as a security risk in the US because its alleged closeness to the Chinese government.

    However, the restriction has not yet come into effect, as the Department of Commerce delayed the ban on American companies supplying gear to Huawei for 90 days in August.

    Big suppliers, such as Micron and Intel, are reported to be circumventing sanctions and supplying parts to Huawei. Now the US authorities plan to introduce licences that will allow chosen companies to bypass the restriction and sell non-sensitive parts to Huawei, sources say.

    The plan has not yet been announced officially, but might be revealed as American and Chinese officials meet in Washington this week for trade talks. The NYT says restrictions on Huawei could be used as leverage in the talks.

    The year-long US-China trade war is not only hitting the US and Chinese economies, but other Asian markets too. New tariffs on $112 billion of Chinese goods, imposed by the Trump administration, came into effect on September. 1. China responded with retaliatory tariffs targeting a total of $75 billion US goods.

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