US to scale back Huawei trade restrictions to help its existing customers

PUBLISHED:

See more TechGraph stories in your search results.
Google Add TechGraph on Google

The US Commerce Department said on Friday it may soon scale back restrictions on Huawei Technologies after this week’s blacklisting would have made it nearly impossible for the Chinese company to service its existing customers.

The Commerce Department, which had effectively halted Huawei’s ability to buy American-made parts and components, is considering issuing a temporary general license to “prevent the interruption of existing network operations and equipment,” a spokeswoman said.

- Advertisement -

Potential beneficiaries of the license could, for example, include internet access and mobile phone service providers in thinly populated places such as Wyoming and eastern Oregon that purchased network equipment from Huawei in recent years.

In effect, the Commerce Department would allow Huawei to purchase US goods so it can help existing customers maintain the reliability of networks and equipment, but the Chinese firm still would not be allowed to buy American parts and components to manufacture new products.

The potential rule roll back suggests changes to Huawei’s supply chain may have immediate, far-reaching and unintended consequences.

The blacklisting, officially known as placing Huawei on the Commerce Department’s entity list, was one or two efforts by the Trump administration this week allegedly made in an attempt to thwart national security risks. In an executive order, President Donald Trump also effectively barred the use of its equipment in US telecom networks.

The United States believes Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

The latest Commerce move comes as China has struck a more aggressive tone in its trade war with the United States, suggesting a resumption of talks between the world’s two largest economies would be meaningless unless Washington changed course.

A spokesman for Huawei, the world’s largest telecommunications equipment maker, did not immediately respond to a request for comment.

Out of $70 billion Huawei spent for buying components in 2018, some $11 billion went to US firms including Qualcomm, Intel Corp, and Micron Technology Inc. If the Commerce Department issues the license, US suppliers would still need separate licenses to conduct new business with Huawei, which would be extremely difficult to obtain, the spokeswoman said.

The temporary general license would last for 90 days, she said and would be posted in the Federal Register, just as a rule adding Huawei to the entity list will be published in the government publication on Tuesday.

“The goal is to prevent collateral harm on non-Huawei entities that use their equipment,” said Washington lawyer Kevin Wolf, a former Commerce Department official.

The entity listing bans Huawei and 68 affiliates in 26 countries from buying American-made goods and technology without licenses that would likely be denied.

The entities list identifies companies believed to be involved in activities contrary to the national security or foreign policy interests of the United States.

In a final rule posted on Thursday, the government tied Huawei’s entity listing to a criminal case pending against the company in Brooklyn, New York.

- Advertisement -

US prosecutors unsealed the indictment in January accusing the company of engaging in bank fraud to obtain embargoed US goods and services in Iran and to move money out of the country via the international banking system.

Huawei Chief Executive Officer Meng Wanzhou, daughter of the company’s founder, was arrested in Canada in December in connection with the indictment, a move that has led to a three-way diplomatic crisis involving the US, China, and Canada.

Meng, who was released on bail, remains in Vancouver and is fighting extradition. She has maintained her innocence, and Huawei has entered a plea of not guilty in New York.

Trump injected other considerations into the criminal case after Meng’s arrest when he told Reuters he would intervene if it helped close a trade deal.

Stay ahead of the curve, every day.

A daily briefing covering news, interviews, and the trends driving the world forward. Curated for readers who want news, not noise.

We don’t spam! Read our privacy policy for more info.

- Advertisement -
Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

Top Gainers · Global

View all
NamePriceChange
LMTLockheed Martin $589.91 +7.87%
300750CATL CN¥237.60 +7.38%
INTUIntuit $354.90 +6.27%
ADBEAdobe $270.55 +5.42%
JNJJohnson & Johnson $267.61 +5.11%

Latest Stories

Create Cozy-Aesthetic Videos from Everyday Lifestyle Photos

There's a particular kind of content that never seems...

How Gen Z Is Using AI to Make Matchmaking More Personal

Gen Z AI matchmaking reflects a broader shift in how young Indians approach marriage, with technology learning to understand what people are looking for rather than forcing them to fit their expectations into traditional search filters.

The Connected Exchange: NCDEX CTO Balkrishna Shankwalker on the Future of the Commodity Market

As commodity markets become more complex, NCDEX is rethinking its technology infrastructure around anticipating risks, widening digital access and improving price discovery through more connected market systems.

The best CRM for a small business with a remote sales team is the one that answers at 11 p.m.

Every month, 18,100 people in the US search for...

NumanCap Review 2026 | Markets, Margin and Mobile

Not long ago, trading meant calling a broker, paying...

Related Articles

Create Cozy-Aesthetic Videos from Everyday Lifestyle Photos

There's a particular kind of content that never seems to go out of style — the soft, unhurried cozy aesthetic, all warm blankets, steam...

How Gen Z Is Using AI to Make Matchmaking More Personal

Gen Z AI matchmaking reflects a broader shift in how young Indians approach marriage, with technology learning to understand what people are looking for rather than forcing them to fit their expectations into traditional search filters.

The Connected Exchange: NCDEX CTO Balkrishna Shankwalker on the Future of the Commodity Market

As commodity markets become more complex, NCDEX is rethinking its technology infrastructure around anticipating risks, widening digital access and improving price discovery through more connected market systems.

The best CRM for a small business with a remote sales team is the one that answers at 11 p.m.

Every month, 18,100 people in the US search for “best CRM for small businesses...

The Rise of Retail Spaces in India’s Emerging Cities

Organized retail in India remained more or less restricted to a select few metro...

The Death of India’s Unicorn Obsession

As funding becomes more selective and M&A and secondary buyouts gain ground, India’s startup ecosystem is beginning to rethink what success looks like beyond the billion-dollar unicorn valuation.

How vertical SaaS can modernise India’s laundry and garment-care industry

Ask anyone in an Indian city how they get their clothes cleaned, and you'll...

How to Set a WordPress Maintenance Budget Without Guessing

Build a practical WordPress care budget by separating recurring support, renewals, planned improvements and work that needs a separate decision.

From Alerts to Answers: How AI Is Rewriting Fraud Detection in Financial Services

Every bank, credit union, and payments company runs on a quiet paradox. The systems...

How to Set a WordPress Maintenance Budget Without Guessing

Build a practical WordPress care budget by separating recurring support, renewals, planned improvements and work that needs a separate decision.

From Alerts to Answers: How AI Is Rewriting Fraud Detection in Financial Services

Every bank, credit union, and payments company runs on a quiet paradox. The systems...

5 Best Gift Card Management Software Platforms for Growing Brands

Gift cards have quietly become one of the most valuable tools in a brand’s...

Who Needs to Comply With NIS2? A Sector-by-Sector Guide

Understand who NIS2 applies to, how Essential and Important Entities are classified, and what organisations need to do to strengthen cybersecurity compliance and operational resilience.

Scalefusion Launches Veltar Vulnerability Management for Endpoint Security

Veltar Vulnerability Management connects vulnerability detection with Scalefusion UEM, allowing security and IT teams to assess endpoint risks and move towards remediation within the same workflow.

NumanCap Review 2026 | Markets, Margin and Mobile

Not long ago, trading meant calling a broker, paying a hefty commission, and waiting for a confirmation in the mail. Today you can open...

5 Best Gift Card Management Software Platforms for Growing Brands

Gift cards have quietly become one of the most valuable tools in a brand’s...

Who Needs to Comply With NIS2? A Sector-by-Sector Guide

Understand who NIS2 applies to, how Essential and Important Entities are classified, and what organisations need to do to strengthen cybersecurity compliance and operational resilience.

Meta CPO Chris Cox Sells Shares Worth $13 Mn

Meta Platforms Inc. () Chief Product Officer Christopher Cox has sold 20,000 shares of...

Meta CPO Chris Cox Sells Shares Worth $13 Mn

Meta Platforms Inc. () Chief Product Officer Christopher Cox has sold 20,000 shares of...

Where Driver Dollars Are Really Going

Owning a motor vehicle involves a wide variety of ongoing costs that go far...

How is the extensive use of AI causing cyber threats?

At times, when artificial intelligence is involved in routine procedures without even being noticed,...

What Will Happen to Your Home After a Divorce?

Divorce can affect nearly every part of a person’s life, including where they live...