Microsoft has announced that it has received approval from the U.S. Department of Commerce to sell software to Chinese giant, Huawei. After the US agency had forbidden several US-China companies to make any trade without the federal approval, the business between Huawei and Microsoft was put on hold.
Microsoft Resumes Selling Software to Huawei
There have been several attempts from the American companies, software development giants and component manufacturers to get exemptions from the trade ban.
The US Department of Commerce had restricted all the businesses to conduct trade with any Chinese firm without receiving a license from the agency. Microsoft issued a statement that said it had received permission to do business with Huawei and sell mass-market software to the Chinese Company.
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Statement by Microsoft
The Statement released by Microsoft though did not mention any specific details of the products that are excluded from the trade ban.
The Commerce Department allowed Microsoft to continue trade with Huawei and thus the Windows Maker will be able to sell software and solutions to Huawei. The license grant increases the chances of the same being granted to Google and other American companies. In May, after the blacklisting by US government Huawei stopped using Google Web Services and discontinued Android operating system on its smartphones.
Huawei is, however, worried about losing businesses in the global marketplace.
In an interview, Commerce Secretary, Wilbur Ross, said that the agency is now addressing the various Huawei trade licenses request. The Microsoft Statement also indicates that the agency is now granting permission to some agencies to sell products to Chinese businesses though Ross did not completely deny the possibilities of export denial coming.
However, it is unclear which companies will regain their licenses to sell the software to Huawei. The Commerce department blacklisted the Chinese company and said that it is a threat to national security earlier this year. Agency has on the record not clarified which kind of exports in tech is unsuitable for America as a whole.
Looking at these developments, it is likely that more organizations will receive licenses to make a trade with Chinese companies.