Chinese tech giant Huawei still thinks they are being treated unfairly as an extension to restrict business deals with them lengthened to another 90 days as announced by US Department of Commerce.
The department has initially issued a 90-day temporary licenses back on May 20 and August 19 respectively, hardly giving breathing space to export restrictions. Huawei was allegedly been included in the Entity List due to national security concerns in May.
Huawei expresses dismay saying that extending the Temporary General License won’t have a substantial impact on its business. They say that the decision does nor change the fact that they have been treated unfairly.
Huawei is firm as it call out the United States to put an end to the unjust treatment and have them removed from the Entity List. Moreover, Huawei thinks this move by the US has caused more harm to them than to Huawei. It has created significant economic harm to the American companies who does business with Huawei and has already maimed whatever collaboration and mutual trust both parties have already created.
On the contrary, US Secretary of Commerce Wilbur Ross stated that the Temporary License will allow carriers to continue service to customers in some of the most remote areas of the country who would otherwise be left in the dark.
According to a senior partner at international law firm Dorsey & Whitney, Nelson Dong, if the Entity List prohibition will be carried out soonest possible time, many of US rural carriers would be effectively shut down. It is because Huawei’s products are generally robust, reliable and relatively inexpensive compared to other market options.
Dong revealed how US traditionally opposes imposition of non-market, government imposed factors on private companies and yet it has imposed BIS Entity List which is causing otherwise. As an aftermath, many American telecommunication providers across rural America are forced to choose a government imposed option.
Dong also added that these companies have been forced to dump their investments in Huawei equipment and software and have literally and financially become stressed of the recent turnout of events.
Outside of the TGL scope, any exports, re-exports, or in-country transfers of items subject to the Export Administration Regulations will continue to require a license, if granted, after a review by the Bureau of Industry and Security under a presumption of denial.
China has been very active in urging the United States to put an end in suppressing certain Chines companies and have blatantly included the concept of national security in its claim.
Foreign ministry head Geng Shuang is firm in opposing how the United States is seemingly abusing its state power and has resorted to suppressing particular Chinese companies without any evidence. Shuang reiterates that such bullying behavior goes against the principle of market economy, something of which the US has always claimed to champion.
