U.S. to offer temporary exemptions to Huawei export ban

“U.S. officials said Monday they would grant a handful of temporary exceptions to an export blacklist against Huawei Technologies Co., giving some suppliers and customers of China’s telecom giant a 90-day reprieve from tough trade penalties,” John D. McKinnon, Dan Strumpf, and Yoko Kubota report for The Wall Street Journal. “In an order scheduled to be published on Wednesday, the Commerce Department said it would grant a temporary license for U.S. exports to Huawei and dozens of its affiliates.”

“The reprieve comes hours after Alphabet Inc.’s Google unit signaled plans to cut access to some of its most-popular features on Huawei smartphones,” McKinnon, Strumpf, and Kubota report. “The move late Monday put a hold on those plans, according to a person familiar with the matter.”

“The reprieve for Huawei eases tensions between the U.S. and China as both countries seek to get trade talks back on track,” McKinnon, Strumpf, and Kubota report. “The exceptions show the blacklist order has ‘always been for leverage in the trade talks,’ said Derek Scissors, an American Enterprise Institute scholar… The temporary reprieve isn’t a huge positive for Huawei, but it does give U.S. businesses some time to get their affairs in order, said Michael Allen, a managing director at Beacon Global Strategies LLC, which is advising clients on the issue. ‘It’s a temporary stay of execution,’ he said.”

Read more in the full article here.

MacDailyNews Take: The Sword of Damocles now hangs above Huawei.

Perhaps that’s enough impetus to get the U.S.-China trade deal done.

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8 Comments

  1. “The Sword of Damocles now hangs above Huawei.

    Perhaps that’s enough impetus to get the U.S.-China trade deal done.”

    Wishful thinking. As I said before, the “trade war” is not about trade. It’s about geopolitics. Huawei is just an asterisk to the Chinese leadership.

      1. The Trump about-face is because rural networks in the USA are reliant on the cheapest telecom equipment they can get. That is Huawei.

        5G will be so expensive it will never be rolled out to the Trumpanzee states without Huawei exemptions or government funding. Remember when Republicans disliked big government intervention?

  2. While temporary it’s not really a great situation for all those US suppliers in Huawei’s supply chain, especially as Huawei is such a big customer being the second largest mobile manufacturer in the world and largest telecom manufacturer for 4G/5G.
    Long term this may also highlight to Huawei and other international companies that their could be more risk in using a US supplier which doesn’t help the trade deficit.
    That’s the problem with today’s globally integrated supply chains, imposing tariffs will always have unintended knock on effects on both sides. That is why everyone says no one wins in a trade war. Lets hope they come to an agreement soon.

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