Last year the U.S. government banned Huawei and its equipment from use in building 5G networks over national security concerns, Inside Towers reported. Now, Huawei and dozens of its suppliers are in limbo after the Commerce Department last week denied 150 license requests that have been on the books for months, valued at $120 billion worth of goods and technology, reported Slash Gear. Another $280 billion in license applications for Huawei that have not yet been processed are likely to be denied. In addition, eight previously granted licenses, including Intel Corp., will be revoked.
Under the sanctions applied to Huawei, U.S. companies cannot sell any American product or component to the Chinese telecom due to its enrollment in the Entity List. This list, first published in 1997, is a trade blacklist published by the United States Department of Commerce’s Bureau of Industry and Security, consisting of certain foreign persons, entities, or governments. Once on the list, entities are subject to American license requirements for the export or transfer of specified items, such as some U.S. technologies.
U.S. companies could apply for license exceptions, reported Slash Gear. Some licenses were reportedly granted because they were deemed not to be essential in furthering Huawei’s 5G business. At the same time, dozens more were left on the table because U.S. government agencies couldn’t agree on an outcome.
Companies that received the “intent to deny” notices have 20 days to respond, and the Commerce Department has 45 days to advise them of any change in a decision, or it becomes final, reported Reuters. Companies would then have another 45 days to appeal the decision.
The U.S. action came after pressure from the outgoing Trump administration, reported Reuters. It’s up to the new administration to decide whether to reverse the federal government’s stance concerning Huawei’s sanctions.