U.S. will allow Huawei to buy American parts for just one reason only

U.S. will allow Huawei to buy American parts for just one reason only
Last week, the U.S. Commerce Department put Huawei and 68 of its affiliates on the Bureau of Industry and Security (BIS) Entity List. This means that U.S. companies cannot sell technology to Huawei without obtaining a license from the BIS. But the Commerce Department is taking a step back from this hard line, as Reuters reports. After all, internet access in some sparsely populated areas of the U.S. still relies on Huawei networking equipment purchased in the past. According to former Commerce Department official Ken Wolf, "The goal is to prevent collateral harm on non-Huawei entities that use their equipment."

For example, there are areas of Wyoming and eastern Oregon serviced by internet service providers and wireless carriers with networks that use Huawei's networking gear. The company is the global leader in providing such equipment and its placement on the BIS Entity list could prevent Huawei from servicing a U.S. network built around its products. A Commerce Department spokesman said that it is considering awarding Huawei a temporary general license in order to "prevent the interruption of existing network operations and equipment." Without this temporary license, some rural markets could lose internet and wireless mobile service if there is a network hardware issue that Huawei needs to repair.

The 90-day temporary license would allow Huawei to obtain U.S. technology to keep existing equipment and networks in the states up and running. However, it would not allow the company to buy American parts to build new products. And for those who have been wondering what Huawei sources from the U.S., last year the firm spent $11 billion buying U.S. parts from companies like Qualcomm, Intel and Micron Technology Inc. That means out of the $70 billion that Huawei spent on components last year, 15.7% was spent on U.S. sourced components.

The U.S. considers Huawei to be a threat to national security since the communist Chinese government can call on it to collect intelligence against consumers and corporations. For years, there have been rumors that Huawei products contain a backdoor to enable such spying, which the company has denied. Just the other day, company chairman Liang Hua said that Huawei would sign a "no-spy" document with any country.

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17 Comments

2. Back_from_beyond

Posts: 1435; Member since: Sep 04, 2015

Meanwhile Cisco once again got caught with severe exploited vulnerabilities in their equipment and this is an American company. It makes you wonder...

3. Xyzdragon

Posts: 10; Member since: Dec 23, 2018

I dont understand why noone saying or mention about Lenovo backdoor problem/trojans with their laptops awhile back .

12. vikingsfootball09

Posts: 112; Member since: Oct 02, 2013

bcuz they are not a threat to the Apple lol

5. Galen20K

Posts: 577; Member since: Dec 26, 2008

Huawei is literally the worst most dishonest company in the world, with absolutely no appreciation for what is right or truthful. I'm glad this is all finally coming out now. Huawei Apologists can say anything they'd like, but it doesn't change the fact just how terrible a company they really are. They will continue to slander, because they know in their hearts how scrupulous and shady Huawei is deep down.

8. Back_from_beyond

Posts: 1435; Member since: Sep 04, 2015

And again with zero proof of any wrongdoing by Huawei other than a little case of corporate espionage that you can accuse any major tech firm of doing too, with some having been convicted and having paid the price, we're just left wondering what the real reason is. ZTE got knocked down a peg by the US government when they started selling a lot of phones there, now Huawei was aiming for the third place in the USA and they've been stonewalled. It's clearly a fear of China, probably for being an economic superpower greater than the USA. The US government wasn't happy with China buying their debts or their gold.

15. Alex_12

Posts: 54; Member since: May 30, 2018

Not sure if you are following all the news, but Huawei got caught cheating, stealing and laying... They were sued many times.

9. Plutonium239

Posts: 1230; Member since: Mar 17, 2015

I don't know, Apple is pretty dishonest.

11. vikingsfootball09

Posts: 112; Member since: Oct 02, 2013

sounds like ur also describing Apple lol

7. pt020

Posts: 164; Member since: Apr 08, 2014

......

14. japkoslav

Posts: 1516; Member since: Feb 19, 2017

Since there is no proof and people talking about this situation are "IT dumbasses" I am not yet willing to state Huawei being quilty. So many "experts" acted like they understand this issue in my country ... it certainly sold a lot of ads on TV and in newspapers.

16. bill718

Posts: 23; Member since: Jul 28, 2014

Beware all networking equipment manufacturers have backdoor to their products, just matter of trust. Remember earlier day regard US spy on foreign leaders phone conversations? Huawei=Communist China, trustable?

17. hamaidx

Posts: 99; Member since: Apr 28, 2015

I have read so many articles on your site PA and on none you've an article stating... US has failed to show even a single scenario where Huawei was infact spying... Shame... Media is supposed to be true and not bootlicking.

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