Microsoft Corp (NASDAQ:MSFT) has received a license from the US Department of Commerce to export “mass market” software to Huawei Technologies Co.
A Microsoft spokesman said that the Department of Commerce gave the company approval on November 20 to export mass-market software to the Chinese giant. The spokesperson said they were grateful for the government’s action in response to the company’s request.
US firms receive licenses to conduct business with Huawei
The Trump administration gave the Chinese giant its second reprieve at the beginning of the week allowing US suppliers to commence sales to Huawei. Six months ago, the US government placed the company on trade blacklist citing national security concerns.
The Department of Commerce announced that it had extended the Temporary General Licence. This will allow US companies to conduct business with Huawei for another 90 days license-free. This will expand Huawei’s supplier base and offer much-awaited clarity to an industry that once sold the company goods worth billions of dollars. The department indicated that the beneficiaries of the TGL are mobile carriers offering services in rural areas.
A US official stated that they had so far received close to 300 license requests, and they had processed almost half of those. Around 25% of the total requests had received approval, with the rest turned down. A source familiar with the matter indicated that licenses approved included the sale of non-electronic and cellphone components.
Huawei waiting for Google license to supply services
The Chinese smartphone maker is waiting for a license for Google (NASDAQ:GOOGL) to supply its services to new phone models. This is because, without services like Google Play Store for Apps, it will generally be difficult to sell the smartphones outside China.
The approval of licenses comes as the US and China prepare to sign Phase one of their trade deal after a protracted tariff war. However, some legislators have opposed the move urging the Department of Commerce to halt the issuance of the licenses. They still hold that doing business with Huawei poses a threat to US Security.