The US Holds Off Huawei’s Licenses As China Halts Crop Buying

The US Holds Off on Huawei Technologies Co. Ltd. Licenses as China Halts Crop Buying

The White House has decided to hold US companies’ license to restart a business with Huawei Technologies Co. Ltd. and others. As per the analysts’ information, China has decided to halt farming goods and other purchases from the US. In last week, Wilbur Ross, US commerce secretary, got nearly 50 requests for resuming sales but still, the decision is pending. Besides, American businesses require a special license for supplying goods across various countries. In May, the United States government added Huawei Technologies Co. Ltd. to the trade blacklist due to the national-security concerns. Therefore, investors across various countries worried about the US’ decision.

Furthermore, the decision could have a massive impact on the business of various American companies, as they rely on Huawei for telecommunication equipment. The news of a delay in license approval has also affected shares of various Huawei suppliers including Western Digital Corp., Micron Technology Inc., etc. Those companies have reported a fall of 2.2%. Besides, other companies like Xilinx Inc., NeoPhotonics Corp., Qualcomm Inc., etc., have experienced dive of around 1% in after-hours trading sessions. On Friday morning, the Huawei Technologies Co. dollar bond became wider nearly 10 to 15 basis points. Besides, the offshore yuan and the Australian dollar become weaker than the yen, and the greenback increased.

In Japan, US President said they might release some restrictions on Huawei after agreeing to the now-broken trade truce with Xi Jinping Chinese President. According to the US President’s statement, the issue of Huawei does not have any ties with the trade talks. The Commerce Department and White House, both, have declined to comment on this matter. Also, Huawei Technologies Co. Ltd. is declining to comment on this issue. In July, chief executives of many companies had a meeting with the US president concerning license approval. On the other hand, other companies like Micron Inc., and Xilinx Inc., have already applied for the license. Moreover, those companies have requested the US to allow them for trading with Huawei.

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Categorized as Business

By Azad Abdul

Azad, one of the pivotal elements of our editorial team, has been in the journalism industry for more than 5 years. He has been writing about business and global affairs in general, but this learning aficionado has a taste for everything when it comes to good reporting and writing. If not in front of the writing desk, he can be spotted in a library or something.

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