Microsoft finally secures a license to export, ‘Mass-market’ software to Huawei

Well, to all those who have no idea about what will be blabbered in the latter part of this article, Here’s a short insight for you guys right here. So, here’s the story of Huawei being listed into the ‘entity list’ of the United States.

The company was accused of posing a threat to the National security of the United States. To be precise, being a China-based company, Huawei might act as an asset to the Chinese intelligence about every political, economic and diplomatic move of the United States. Although the company has strongly denied all such claims, still it was listed in the Entity list of US. And guess what the story has just begun!

Back when Huawei was added to the ‘Entity list’ of the United States, for it was suspected to be a spy of the Chinese government under Sheep clothing sharing intelligence on US stats of technology and information. Which was, of course, not the case. As they say, assumptions must be assumed very carefully and on strict experimental grounds at that!

At the same time, Donald Trump president of the United States issued an executive order in the name of the Chinese Multinational Company to effectively ban it from the lands of the US And if you don’t know what’s an ‘entity list’ is? Let me enlighten you on this part!

Well, the Entity list is a rather shortened form and stands for United States Bureau of Industry and Security Entity List. It refers to a list of entities that are not qualified or allowed to do any kind of export tradition in the United States without a license from the Export Administration as per the legal regulations.

Well, to put it in simple words, if included in this list then it gonna be a hell lot of trouble on the profits of your company or business, for one is not legally permitted to do any kind of business with any US-based Company.

Here’s a statement released by the Commerce department back then, “The executive order prohibits transactions that involve information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary whenever the secretary of commerce determines that a transaction would pose a threat to national security.”

Despite the continuous denial of Chinese Tech giant, Huawei on these accuses, it was still unfairly listed in the Entity list. And the government didn’t even have a proper justification on its grounds.
Well, this was a story of ‘Once upon a time….’ although not so past. Still, now that you know what’s going on? Let’s moved on to the next part of the same. Recently, Microsoft acquired a licence which allows it to export some of the software to Huawei. And just to be clear Microsoft was also not allowed to entertain any kind of trade with Huawei. Yup, that right! It’s a US-based tech company.

Well, the catch here is that this license has been extended to all the American Companies of the United States to do business with Huawei for a period of another 90 days earlier this week. Yup, you got it right. Although this is just a temporary extended license, still the company can sigh relief for it has a chance to recover on its losses!

In light of this grant, Microsoft Thanked the Commerce department through an email which stated, “On November 20, the US Department of Commerce granted Microsoft’s request for a license to export mass-market software to Huawei. We appreciate the department’s action in response to our request.”

Following which now Microsoft with several other US tech Companies is allowed to sell software to Huawei. Although, it is still unclear what kind of software’s will Microsoft be exporting to Huawei and hence the definition of, “Mass-market” remains a mystery. And it’s expected that Microsoft will probably be exporting Windows software to Huawei for its Windows-powered laptops.

Earlier Huawei has to postpone the release of its new Windows-powered laptop which was yet to be revealed to the tech maniacs in the CES Asia this year, and Microsoft had to restrict the sales of Huawei MateBook X Pro laptops on Microsoft stores due to the unfair listing. But with the new export licence, all this issue might get a push of ease in their streamline.
Still, the entity listing of Huawei had put the Companies into a pit of revenue as well as a dilemma. For to what extent of the trade is allowed and what is not, the lines are still blurred.

For trading with an Entity listed company, the US-based Companies need a license to trade. And just a piece of information, along with this license comes a pile of revenue too which the Companies had to pay in return to permit of ‘trade with the entity company’.

The difficult part was the limitation and boundaries that they were supposed and allowed, especially for Tech oriented Companies. Why? Well, because Huawei was accused of sharing the United States intelligence on technology and selling it off to the Chinese government, posing a threat to the National Security. As such, being the case tech companies lawyers and leaders were trying to seek clarification on this part with the US government for ages.

Microsoft President Brad Smith even questioned the US government on this part and said that they were treating Huawei ‘unfairly’ although it’s a China-based company and sought to clarify on the facts of its accusations as well as an explanation on being listed in the Entity list without proper justification.

This week on Tuesday in an interview with Fox Business Network, Wilbur Ross Commerce Secretary said, “We’ve had 290-something requests for specific licenses. And we’ve now been starting to send out the 20-day intent-to-deny letters and some approvals.” Although Companies has been sending out their request for ages, especially Microsoft got the license recently despite a continuous request and complaints.

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