On May 16, the President of the United States invoked the International Emergency State Economic Powers Act to sign an executive order requiring US companies to enter a state of emergency. The United States officially opened the prelude to sanction Huawei. This action put Huawei on the “ list of entities” and prohibits Huawei from using US products and technologies.
Recently, US president, Donald Trump, announced at a press conference that he would allow US companies to continue selling products to Huawei. According to Trump, Huawei’s products are very complex products mostly from Silicon Valley in the United States. These American companies are great and will drive employment. Thus, American companies are allowed to continue selling products to Huawei.
The Chairman of the American Economic Committee, Larry Kudlow, explains more on the ban lift. He said that the lifting of the ban is about to take effect. The Ministry of Commerce will provide some licenses for companies that need it. According to him, the Chinese manufacturer can only purchase “American chip products that are equally widely sold in other countries”. He denies claims that this move is a “catastrophic mistake”. Larry believes that national security is still the most important consideration. He finally said that the United States president does not have the final word on this issue. It will pass through some processes before the conclusion.
While the company awaits official communication, it has an official response. Tim Danks, vice president of Huawei’s risk management and partnerships department spoke to the media. “Huawei has been informed of US President Trump’s statement about Huawei last weekend. We will wait for instructions from the US Department of Commerce…” The company will no have to wait for instructions to ascertain the extent of relaxation of the ban.