US to scale back Huawei’s sanctions for the help existing customers

On Wednesday, the US commerce department added Huawei to its so-called “Entity List” barring the Chinese telecom giant from doing business with US firms and now it’s being reported that the US will scale back its business ban on Huawei for the help of its existing customers.

Huawei’s chip making division has long been prepared for the US sanction

According to Reuters, the US Commerce Department said on Friday it may soon scale back restrictions on Huawei Technologies after this week’s blacklisting would have made it nearly impossible for Huawei to service its existing customers.

The department, which had effectively halted Huawei’s ease of doing business with US firms, is considering for a temporary general license to “prevent the interruption of existing network operations and equipment”, said a spokesperson.

Potential beneficiaries of the license could be internet access and mobile phone services providers in thinly populated places such as Wyoming and eastern Oregon that purchased network equipment from Huawei in recent years.

The US president on Wednesday officially signed a trade blacklist on Thursday, adding restrictions that’ll make the company very difficult to do business with American firms, which labeled as an action against national security.

The US believes that telecom equipment made by Huawei Technologies could be used to spy on the country and is under control by the Chinese state government. On the other hand, Huawei has always denied these allegations and said their equipment has no such threats.

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