According to US media reports, China Telecom giant Huawei Technologies Co., Ltd. is facing a new obstacle: bringing technology developed by American subsidiaries back to China.
Huawei Technologies Inc. has been unable to bring back some technology from its Silicon Valley R&D branch after the U.S. Department of Commerce hinted that it would not renew its export license, according to sources familiar with the situation and documents seen by the Wall Street Journal, the Wall Street Journal website reported Wednesday.
On January 9, people walked past Huaweis advertising screen at the Consumer Electronics Show in Las Vegas, USA. (Visual China)
Reported that these documents show that the U.S. Department of Commerce sent a letter to Futurewei in June 2018, saying that due to national security considerations, it intends to reject the latters application for renewal of licences. Futurewei has challenged the decision of the U.S. Department of Commerce, but the technology involved has been banned from export, according to people familiar with the matter.
According to the report, the document shows that the license covers telecommunications technology and software export, including high-speed data exchange technology. The operating budget of the technology is over $16 million, involving more than 40 full-time personnel.
The report quoted people familiar with the matter as saying that the move by the U.S. Department of Commerce would not be a fatal blow to Futurewei because most of the technology it exports from the United States does not require an export license. The company continues to operate in the United States.
However, the report said the move was still a setback for Huaweis business in the United States. About 700 engineers and scientists work at Futureweis main research and development center in Santa Clara, California, which opened in 2011.
According to reports in the Wall Street Journal, Futurewei wrote a protest letter to the Commerce Department in July 2018 saying that if the application was not approved, the company might have to relocate its R&D center outside the United States.
According to the report, in a statement to the Wall Street Journal, U.S. Commerce Secretary Ross said: The issuance of export licenses and ongoing trade negotiations between the United States and China are mutually independent.
_U.S. Commerce Secretary Ross (Visual China)
According to the documents seen in the Wall Street Journal, the Department of Commerces Industrial Safety Agency sent a letter to Futurewei in June 2018 saying it planned to reject the application for renewal of export licences for the Chinese company from 2014 to April 2018.
According to the report, Huawei responded in July 2018 that the US Department of Commerces reasons for national security were unfounded. The company also says these technologies are widely available outside the United States.
The report quotes people familiar with the matter as saying Huawei still has access to appeal against the decision. But Huaweis timetable for filing complaints is unclear.
Up to the time of press release from Reference News Network, Huawei had not received any feedback or comments on the aforementioned events.
Source: Responsible Editor of Reference Message Network: Li Wan_B11284