On Thursday, Microsoft confirmed that it had been duly granted a license by the United States government for the export of its software to Huawei. According to a spokesperson for Microsoft, on 20th November, the United States Department of Commerce successfully granted a request led out by Microsoft for the license that allows it to export market software on a mass level to Huawei.
On Wednesday, the Trump administration gave Huawei its 2nd reprieve for the week that allows some of the suppliers to jumpstart its sales made to Huawei after the company was placed on the blacklist for trading in the United States citing concerns regarding national security about 6 months ago. As confirmed by the Commerce Department, it had started issuing licenses to some of the companies that had been selling goods to the smartphone manufacturer in the past. This has duly expanded the company’s existing supplier base post the ban. Not just that, this license grant has provided long-awaited business clarity to the company that was once known to sell goods that were worth billions.
On Wednesday, it was mentioned by a U.S. official that it managed to receive around 300 requests for allowance of the license to trade with Huawei. Half from these requests have already been approved, while the rest have been denied due to unknown reasons. There was no clear memorandum to ensure which products are being approved by the U.S. government to be sold to Huawei. According to an inside source, it was cited that licenses for cellphone component sale along with the non-electronic parts are being approved for sale while others are being denied.
For months, Huawei has anxiously been waiting for the Google Alphabet license to be approved so that it can be a part of its latest models. With no access to the services provided by Google like the Play Store apps, the phones being manufactured by Huawei will experience low sales beyond the territory of China. However, no comments have been acquired from Google’s behalf with regard to this matter.
This sudden approval of licenses by Trump administration comes as the department is working on its way to sign a trade deal phase I with China in order to end the trade war between the countries. This trade war has roiled the markets & hit the affluent growth of the global market. However, this move was met with strong opposition by a group comprised of 15 senators that urged for the suspension of these licenses.