Thanks to a recent reversal, it was announced that Huawei could once again do business with US companies. However, it does not mean that the company has been taken off the Entity List, but rather it meant that unless the business poses a risk to national security, US companies can apply for licenses to do business with Huawei.
However, the big question is when will business dealings resume? Turns out it could be pretty soon. According to a report from Reuters, it seems that US companies are expected to begin their business dealings with Huawei once again in as little as 2-4 weeks. The publication was told by two US chipmakers that they will be applying for licenses soon, while another customer response management company has also indicated that they plan on applying for a license in the coming days.
We should point out that companies on the Entity List can still do business with US companies if a license were to be granted. However, usually it is understood that these licenses are not easy to come by and are usually denied for the most part, but in Huawei’s case, it is expected to be slightly more lenient, but exactly how much more lenient remains to be seen.
In the meantime, the ban had initially put Huawei in some pretty hot waters. This is because there are a variety of components, software, and services that the company uses for its consumer products that come from the US, including Android and Google Play services.
Filed in . Read more about Huawei and Legal. Source: reuters