Foreign media: The United States will allow Huawei to buy American parts for one reason
Foreign media: The United States will allow Huawei to buy American parts for one reason
2020-05-19 11:29

On May 19, it was reported that recently, the U.S. Department of Commerce listed Huawei and its 68 subsidiaries on the list of entities of the Bureau of Industry and Security (BIS). This means that American companies cannot sell technology and goods to Huawei without the permission of BIS. However, according to Reuters, the US Department of Commerce is backing down because Internet connectivity in some sparsely populated areas of the US still relies on network equipment purchased from Huawei in the past.

For example, some areas in Wyoming and eastern Oregon are provided with network services by Internet service providers and wireless operators, which use Huawei's network equipment. Huawei is a global leader in such devices. If Huawei is included in the list of BIS entities, its network services to the United States may be blocked.

A spokesman for the US Department of Commerce said recently that Huawei was considering granting a temporary general license to "prevent the interruption of existing network operations and equipment". Without this temporary license, if Huawei wants to fix the network hardware problem, some American rural markets may lose Internet and wireless services.

According to foreign media reports, this 90 day temporary license will allow Huawei to obtain American technology and parts to maintain the normal operation of existing equipment and networks in the United States, but it will not allow Huawei to purchase American parts to manufacture new products. The foreign media said that last year, Huawei's total purchase of parts reached 70 billion dollars, of which 15.7% was used to purchase parts from the United States.


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