US firms may get nod to restart Huawei sales in two weeks

Daniel Fowler
July 15, 2019

People familiar with the matter told the WSJ that the planned layoffs are expected to target employees at Huawei's research and development subsidiary Futurewei Technologies.

Huawei was added to a Commerce Department list in May that prohibits US companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied.

Huawei is stated to have about 1,500 employs in the USA who mainly sell equipment to rural wireless carriers.

The administration of US President Donald Trump has put Huawei on its so-called entity list, which meant US companies needed a license to supply US technology to the Chinese firm.

The news from Huawei comes as Trump is under increasing pressure from U.S. workers who are increasingly discontented with the fall-out from the trade war.

Two US chipmakers who supply Huawei told Reuters in recent days they would apply for more licenses after Ross's comments.

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Last week, Commerce Secretary Wilbur Ross said that the USA government will issue licenses to companies seeking to sell goods to blacklisted Huawei where there is no threat to national security.

In response to the United States restricting Huawei from certain infrastructure and software that it needs for its products through the USA blacklist, China has placed U.S. companies on its own "unreliable entities" list.

"U.S. companies can sell their equipment to Huawei", Trump said during a news conference following his meeting with Chinese President Xi Jinping at the G-20 summit in Japan. However they've additionally reiterated that Huawei stays on the entity record, and aid could be short-term.

This follows the news from late last month when Trump, Seeking to revive trade talks with China, announced that American companies would be allowed to sell products to Huawei, the world's largest telecommunications equipment maker.

One person told the WSJ that employees in the United States have been given the option to return home and stay working with the company.

The Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying - allegations the company has denied.

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