Commerce Secretary Wilbur Ross was recently interviewed by Bloomberg where he stated that licenses allowing US companies to deal with Huawei would arrive “very shortly at the same time it has been reported that a trade agreement with China gets closer.
Currently, companies on the trade ban list are prohibited from doing business with American companies without being granted a U.S. government license, although some have maintained relationships with banned companies through international subsidiaries.
The US has received 260 requests for trade licences which Ross said is much more than they had expected. However, he was keen to highlight that a company requesting exception should assume denial of the request as not all of them will be approved.
It is likely that the US government will be getting pressure from US companies to allow the Huawei phone division a sanction as many of these companies receive a huge amount of revenue for Huawei.
Earlier in the year, it was reported by Bloomberg that Qualcomm gets about 2.6% of its revenue from Huawei, fell 4.8%, Micron Technologies receives about 13% and Broadcom about 5.3%.
With Huawei planning on shipping 270 million phones this year, Google will no doubt be very eager to keep supplying their software, and advertising, on the phones.
Currently, Huawei can't offer new phones with a version of Android using Google apps so long as the blacklisting remains in effect, and its ability to update existing phones will go away when temporary licenses expire on the 19th of November.
The Huawei Mate 30 Pro arrived without any Google apps which have caused a delay for its release in Europe. It is claimed that Huawei could launch the Mate 30 and Mate 30 Pro in Europe starting Mid-November, possibly on November 15th. Huawei have stated that if the trade bans are lifted, they could update the Mate 30 Pro with an over there air update almost immediately.
While there is a good chance that Huawei will see the ban lifted for its smartphone division, the cellular equipment side of the business almost certainly will not. The FCC is currently proposing that US companies would be banned from using Huawei and ZTE equipment.
Last Updated on