US Suppliers Of Huawei Attempt To Reverse Last Minute Bans By Trump Administration

Additional time is being sought by semiconductor companies to appeal against the last minute movers by the last-minute Trump administration of the United States to block sales to Chinese telecoms company Huawei.

According to reports quoting sources, the companies are hopeful of a reversal of policy even though analysts see it unlikely that the new Biden administration will do so.

There would ultimately be significant softening of the hard-line position of the United States on the issue, reports quoted a number of company executives as saying without naming them.

“Everyone is deflated,” one company executive reportedly said.

How the new Biden administration reacts to the export restrictions which were put in place by the former Trump administration will decide the fate of US technology and chip sales to Huawei which is worth billions of dollars.

The hope of the companies is that the Biden administration will allow some of the rejected Huawei sales if the3y have more time to put forward their case before an interagency panel as well as possible shift in US policy towards China.

No comment on the issue was available from the US Commerce Department while a spokeswoman for Huawei said that the company was in no knowledge of what was taking the place in the licensing process at the agency.

The US government under president Donald Trump informed the suppliers of Huawei days before handing over power to the Biden administration on January 20 that it was revoking some of the license granted by it to the suppliers for selling their products to the Chinese company, which included licenses given to chipmaker Intel Corp and informed of its intention to turn down dozens of applications from other suppliers of Huawei for the seeking permission.  

According to analysts, the last minute move by the Trump administration to issue a series of  “intent to deny” notices were more tough-on-China move aimed to prompt the new Democratic President Joe Biden into pursuing the hard line policies against China that were set up during Trump’s presidency.

According to a US Commerce Department document dated January 13, 116 license applications worth $119 billion were rejected by the Trump administration while it had approved only four licenses worth 20 million. The document said that there were a further 300 such applications that carried a combined stated value of $296 billion were in queue for a decision by the government.  

Reports said that some the companies whose application for a license had been denied by the Trump administration wanted the Commerce Department to give them more than the 20 stipulated days to make an appeal against the revoking decision. Reports confirmed that a 90 day period for an appeal has been granted by the department.  

Back in May 2019, the US Commerce Department had put Huawei on its so called black list because of concerns of national security following allegations by the Trump administration that the telecom equipment supplied by the Chinese company could be used to spy on American users and be used for intellectual property theft and for violation of US sanctions on Iran.

Huawei has denied all wrongdoing.

(Adapted from USNews.com)

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