US - China Relations: Commerce Secretary Says US Government Will Soon Grant Licenses For Huawei Sales

Secretary of Commerce Wilbur Ross told Bloomberg on Sunday that the U.S. will soon grant licenses to American companies that want to sell components to Chinese telecommunications giant Huawei. Ross said that the licenses would be coming "very shortly" and that the government has received 206 requests, more than expected.

Although Ross contends that the government will grant "quite a few" exemptions, he said companies should be prepared to be denied the waiver. Ross didn't drop any hints on the names of companies which applied for licenses.

Huawei has been under a government blacklist since May due to national security concerns. U.S. companies are therefore prohibited from doing business with Huawei unless they receive a license. In June, President Trump said he would lift some of the restrictions on the U.S. companies selling to Huawei.

A Huawei executive has claimed that 1,200 U.S. firms have been "directly" hit by the blacklist and that it would hurt billions of consumers.

Despite the U.S. sanctions on the company, Huawei has said that its sales are up 24.4% in the first nine months of 2019, to the equivalent of $86 billion. Huawei has claimed that the U.S. has tried to interfere in its business and that U.S. law enforcement has tried to intimidate its employees.

The Huawei issue could be part of a future trade deal between the U.S.and China, as the two sides are engaged in a tariff dispute.