Huawei Chairman Urges US to Remove Company From Entity List

Darnell Taylor
July 13, 2019

On 10 July US Commerce Secretary Wilbur Ross announced that as long as Huawei remains on the entity list, in its implementation of President Donald Trump's G20 summit directive, the department would issue licenses to sell components and spare parts to the Chinese tech giant when it's determined there is no threat to US national security.

"We operate in more than 170 countries and regions, serving more than 3 billion people worldwide, and we are working to provide more coverage and easier connectivity to bridge the global digital divide", Liang said. "We believe our listing on the blacklist should be lifted completely", he's quoted as saying.

Huawei CEO Ren Zhengfei expects the USA sanction to cause the company to lose United States dollars 30 bln in revenue in 2019 and 2020.

Liang said Huawei is deciding how to respond to possible loss of access to Google's Android operating system for its mobile phones under Trump's curbs.

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This toughened stance of United States on Huawei took place as the negotiations for trade war between China and the USA reached their deadlock in May, and as a result both the countries announced an increase in the tariffs on a vast range of imports. Why has this not amounted to major changes for Huawei yet?

At the same time, Huawei will remain in the black list for doing business with it American companies still will need to obtain a license. "Huawei itself remains on the Entity List, and the announcement does not change the scope of items requiring licenses from the Commerce Department, nor the presumption of denial". It seems licences have been applied for, but the bureaucratic wheels are turning slowly.

Steven Mnuchin, the Treasury Secretary has encouraged the USA suppliers to seek the approval for continuing to sell equipment to Huawei. In a recent interview with Digital Trends, the overriding message from the firm is that it's business as usual.

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