12 Juli 2019

[120719.EN.BIZ] US To Show Leniency On Licences For Sales to Shenzhen's Huawei Tech

THE US government will issue licences to companies seeking to sell goods to China's Huawei where there is "no threat to national security," said Commerce Secretary Wilbur Ross, Reuters reported.

Speaking at an annual department conference in Washington, Secretary Ross affirmed that the company would remain on the Entity List, meaning that licences would likely be denied, but also offered an opening for some to be approved.

"The actual policy, of what is not going to endanger US security, is not clear," Washington trade lawyer Doug Jacobson said. "The only way that industry can determine the line is by submitting [licence] applications and knowing what types will be approved and which types will be denied."

Seeking to revive trade talks with China, US President Donald Trump announced last month that American companies would again be allowed to sell products to Huawei Technologies, the world's largest telecommunications equipment maker.

President Trump's comments came after the United States placed Huawei on the US Commerce Department's so-called Entity List in May over national security concerns. US parts and components generally cannot be sold to those on the list without special licences.

Source : HKSG.

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