Microsoft To Export Software To Huawei

Huawei has been prohibited from acquiring any tech from U.S.-based tech companies, since it was included in the U.S. “Entity List” due to concerns about national security. But thanks to a temporary reprieve, the Chinese giant will be able to acquire software from Redmond-based tech behemoth Microsoft.

The U.S. Department of Commerce granted Microsoft a license to continue trading with Huawei, Reuters reported earlier this week. The Windows creator is but one of the about 300 companies that filed requests to be given licenses to resume sales with the Chinese company.

A person familiar with the matter told Reuters that the Dept. of Commerce granted licenses for sales of some cellphone components, as well as non-electronic components, to Huawei. Currently, it's still unclear as to what these products are.

Microsoft, for its part, said it won't sell any hardware to Huawei. Instead, it will “export mass-market software” to the Chinese giant. It didn't give any additional details as to the software and other possible products it might sell to the Asian company.

Wedbush Securities analyst Dan Ives speculates that Microsoft's license is for the sales of its popular and widely-used operating system, Windows.

“This will be a major relief for Huawei after an arduous period with large technology players like Microsoft, Google and others restricted on the platform,” Ives said.

Microsoft and other licensed U.S. companies will be able to resume sales with the Asian behemoth for a 90-day period, CNet noted. The Redmond-based company said it "appreciates" the fact that it is licensed to continue its business with the Chinese company.

“We appreciate the department's action in response to our request,” Microsoft told CNet in an email.

Huawei, however, remains defiant and doesn't seem to share the sentiment. In a press release, the Ren Zhengfei-led company said the temporary license “won't have a substantial impact” on its business, and continues to call on the U.S. government to remove it from the Entity List.

Some U.S. Senators, on the other hand, are calling on the U.S. administration to suspend the issuing of licenses, because the move might “threaten” U.S. security, the Washington Post reported. It remains to be seen whether U.S. President Trump continues with his plans for a trade deal with China, or suspends issuing licenses for a time.