situation report

Jul 10, 2019 | 12:18 GMT

1 min read

China, U.S.: Washington to Ease Some Restrictions on Huawei

What Happened: The U.S. government will issue licenses to U.S. companies allowing them to do business with Chinese telecommunications giant Huawei provided it does not pose a threat to national security, according to U.S. Commerce Secretary Wilbur Ross, the South China Morning Post reported July 10.

Why It Matters: China has been reluctant to commit to additional purchases of U.S. agricultural products until Washington eases its ban on Huawei. The decision by the U.S. government to loosen some restrictions could lead Beijing to begin purchasing U.S. soybeans or other farm products and give a reprieve to U.S. technology firms that sell chips and equipment to Huawei.

Background: In May, the U.S. Commerce Department placed Huawei and 68 affiliates on its so-called entity list, which requires U.S. companies to obtain a special license to engage in business with the company. U.S. President Donald Trump agreed during the recent G-20 summit to ease some restrictions on Huawei in instances where it does not pose a threat to national security.

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