Huawei Trade Restrictions May Be Scaled Back To Help Existing Customers

Huawei Technologies

In an exclusive, Reuters reported that the U.S. Commerce Department may soon scale back restrictions on Huawei Technologies This week’s ban had effectively blocked Huawei’s capacity to source American-made parts and components. This could, on the ground mean losses and inconveniences to American users and organizations.

To service this loss, “the US is considering issuing a temporary general license to “prevent the interruption of existing network operations and equipment,” a spokeswoman said. The temporary general license would last for 90 days, she said and would be posted in the Federal Register. These licenses would benefit internet access and mobile phone service providers in sparsely populated places in the hinterland the US, areas that have been purchasing network equipment from Huawei in recent years. Therefore, with this change, the Commerce Department would allow Huawei to purchase U.S. goods so it can help existing customers maintain the reliability of networks and equipment. However, the company would still not be allowed to buy American parts and components to manufacture new products.

Also Read: U.S. Blacklists China’s Huawei As Trade Dispute Deepens

Clearly, the part relaxation is an indication of the immediate, far-reaching and unintended consequences that the knee jerk ban would have on not only Huawei but also the average American customer who has been taking full advantage of the lower costs of the Chinese products for some time now.

Since the ban from the US has not been able to make China subversive, indeed, its tone is now more aggressive- the trade war would potentially hold no benefits for the US.  In fact, this may be the first indication of Washington’s changing of course.

Read More: Huawei Gets Mexico Against US Support

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