July 1, 2019 (4:35 AM ET): President Trump announced on Saturday that U.S. companies would once again be allowed to trade with Huawei. Following the statements, White House economic advisor Larry Kudlow has spoken to Fox News (via CNBC) to provide some further details.
Kudlow reaffirmed that Huawei remains on the U.S. Entity List, but said the Commerce Department intends to grant more licenses to U.S. companies to allow them to do business with Huawei. The economic advisor also explained why President Trump had made the decision given the national security concerns Huawei is said to represent. Kudlow said this wasn’t a “general amnesty” and that trading with Huawei was only being permitted in areas where no security risk was present.
For example, Kudlow said some U.S. chip makers sell components that are “widely available” in other countries, suggesting Huawei would be able to access alternatives despite the U.S. trade ban.
The comments suggest the U.S. government is making a play to satisfy its chip makers — who reportedly kicked up a fuss regarding the trade ban — as well as China.
