Tech: US Lessen Restrictions On Huawei - Halts Google Access Cut Plan

May 21, 2019 | Tuesday

Technology

   

On Monday, the United States government temporarily ease trade restrictions implemented last week against Chinese tech giant - Huawei. That to lessen the impact on Huawei and its customers globally.

The United States Commerce Department determined to enable the Chinese tech firm to buy American goods in order to maintain the company's existing networks and produce software updates on Existing Huawei devices.

However, the tech company is still on restriction from purchasing American parts and components in manufacturing new products. The American firms are required to have a license approved by the U.S. government. That of which is likely to be denied.

According to U.S. Secretary of Commerce Wilbur Ross, the updates authorization is granted to give telecommunications provider relying on Huawei devices time to find another arrangement.

The updated authorization, effective for 90 days, proposes changes within Huawei's supply chain. That of which may have quick, broad, and unintended consequences towards its customers.

Kevin Wolf, Washington lawyer, and former Commerce Department official said that the aim of the authorization is to avoid "internet, computer and cell phone system from crashing." Wolf added that the move isn't a "capitulation," but it is "housekeeping."

According to a Reuters report last Sunday, the Alphabet's Google cuts business with Huawei including hardware transfer, software transfer, and technical services. But that doesn't include publicly offered system through open sourcing licensing.

The U.S. tech conglomerate didn't immediately respond when requested for comment regarding the new authorization. However, the Wall Street Journal reported a person familiar with the matter said the tech conglomerate is to stop its plan to withdraw Huawei's access.

Meanwhile, the Commerce Department said it is still to evaluate if it will extend exemptions more than 90 days.

Last Thursday, the U.S. Commerce Department officially included Huawei and other 68 entities to its export blacklist. That makes most Chinese companies have a hard time to purchase goods coming from the United States.

   

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