About two weeks ago, I wrote about the U.S. government leaning towards re-allowing American companies to supply technologies to Chinese tech giant Huawei. Now we have more details on that arrangement.
Commerce Secretary Wilbur Ross confirmed the plans on Tuesday, but only after the U.S. firms get licenses and when there is “no threat to national security”. “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,” he precised.
President Trump’s economic adviser Larry Kudlow added that the licensing requirements would only be relaxed “for a limited time period,” In other words, the licenses could cease if the trade talks do not progress as expected (as per a report from the Financial Times).
Interestingly, U.S. Senator Tom Cotton (Arkansas — GOP) urged American companies to avoid Huawei. “I strongly discourage any American company from seeking licenses to deal with Huawei,” Cotton stated on Twitter. “Huawei is a threat to Americans’ security, privacy, & prosperity. Don’t be the proverbial capitalist who sells the rope the communists will hang us with.”
Until next time… the tech trade war continues… 🦁⚡🐼