American technology companies that hoped to soon resume their sales to Huawei might have to wait a little longer.
The White House is planning to delay a decision on granting licenses that allow US companies to sell to Chinese tech firm Huawei, based on a report from Bloomberg citing people aware of the matter. This comes after the end of the US-China trade treaty — China on Monday issued to halt the purchases of American agricultural products and fears have escalated of a possible currency war between the two countries. And it is one other blow to tech companies hurt by the latest hike in tariffs on the Chinese goods as announced by President Donald Trump last week.
The Department of Commerce stated it couldn’t verify the news and declined to comment. Commerce Secretary Wilbur Ross said that decisions on more than 50 license applications, the department has received might start this week.
The Chinese telecom giant has to turn out to be a bargaining chip within the US-China commerce conflict. Late in May, the Trump administration placed Huawei on its Entity List, limiting US companies from selling to it without a license. That action harmed Huawei, which depends closely on products from US suppliers similar to Intel (INTC) and Google (GOOG), particularly for its dominant smartphone business. It additionally hurt sales at some American tech companies for which Huawei is a significant customer.
US tech companies urged the White House to allow them to resume the sales and some discovered methods to restart some shipments to Huawei without violating the Entity List restrictions.
Trump in June mentioned he would ease restrictions on Huawei by granting licenses to American companies to renew sales of products that don’t pose a national security risk, although it was not clear precisely which products that include. Two weeks ago, Trump met the heads of seven US suppliers to Huawei, together with Qualcomm (QCOM), Google, Intel, and others.