Intel has returned sales to Huawei

Chipmaker Intel said it began reselling its products to Huawei as the US began easing restrictions on the Chinese telecommunications giant.

Interview with CNBC, Intel CEO Bob Swan said the company had sold certain products back to Huawei in the second quarter, after confirming that ” within the rules of the law.” “. He added that Intel is applying for a license to sell ” multipurpose ” computer chips to the company – a product he believes does not pose a threat to national security.

To be able to sell these products, the company submitted ” a lot of licenses ” that President Trump once claimed would be handled “promptly”, Swan said.

Intel’s resumption of business with Huawei came at a time when the United States had a change in its policy for the manufacturer of this network device, as part of its efforts to promote trade negotiations. trade between the US and China.

Earlier, President Trump’s administration was concerned that Huawei’s technology could pose a threat to national security and could be used as backdoor for the Chinese government to spy and eavesdrop. Other countries, including Britain, Canada, New Zealand and Australia, also see Huawei technology posing a threat to national security.

In May, the US Department of Commerce put Huawei on the Entity List, in order to prevent the company from buying important components and parts from US companies without the US government’s permission.

But after meeting with President Xi Jinping on the sidelines of the G20 Summit last month, President Trump said US companies could sell equipment back to Huawei.

Mr. Trump told reporters after the meeting: ” American companies can sell their equipment to Huawei … there are no urgent problems at the national level .”

Earlier this month, Wilbur Ross, Commerce Minister, announced the easing of restrictions on Chinese companies to match Trump’s statement after the G20 summit. Mr. Ross stated that the US government will issue licenses to US companies seeking to sell to Huawei as long as it does not pose a national security threat, even if the Chinese company is still in Blacklist of America.

President Trump also met leaders of technology companies such as Google, Cisco, Intel, Qualcomm, Micron, Broadcom and Western Digital Corporation – the leading US technology equipment manufacturers – to discuss the limited sales targeted at Chinese telecommunications equipment maker Huawei. At this meeting, Finance Minister Steven Mnuchin encouraged US suppliers to submit licenses to return sales to Huawei.

Refer to Business Insider