Microsoft granted licence to export 'mass-market' software to Huawei
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MicrosoftCorpsaid on Thursday it had beengrantedalicencefrom the USgovernment toexportsoftwaretoHuaweiTechnologies Co Ltd.
"On November 20, the USDepartment of CommercegrantedMicrosoft's request for a license toexportmass-marketsoftwaretoHuawei. We appreciate the Department's action in response to our request," aMicrosoftspokesman told Reuters via email.
The administration of USPresident Donald Trump said this week it would allow some suppliers to restart sales to the Chinese telecoms giant, which was placed on a trade blacklist over national security concerns six months ago.
The Commerce Department confirmed it had begun issuing licenses for some companies to sell goods toHuawei, expanding the company's supplier base and providing long-awaited clarity to the industry that once sold it billions of dollars worth of goods.
On Wednesday, a USofficial said it had received roughly 300licencerequests, about half of which had been processed. Roughly half of those – or one-quarter of the total – had been approved and the rest denied.
It was not immediately clear which products had been approved for sale toHuawei, which is the world's top telecommunications equipment maker and second-largest smartphone maker. A person familiar with the process said Wednesday that some licenses for sales of cellphone components and non-electronic components were approved.
Microsoftdeclined to comment beyond its statement on which products had been approved, and the Commerce Department declined to comment.
Dan Ives, an analyst with Wedbush Securities, said thelicencewas most likely for the company's Windows operating system.
"This will be a major relief forHuaweiafter an arduous period with large technology players likeMicrosoft, Google and others restricted on the platform," Ives said.
Huaweihas been anxiously awaiting alicencefor Alphabet Inc'sGoogle to supply its mobile services to new models. Without access to Google services such as its Play Store for apps,Huaweiphones will become harder to sell to consumers outside of China. Google declined to comment on Thursday.
The granting of licenses comes as the Trump administration is working to sign a phase one trade deal with China to end a tit-for-tat trade war that has roiled markets and hit global growth.
But the move immediately met with opposition. A bipartisan group of 15 senators urged the Commerce Department to suspend the issuing of licenses, saying it could threaten USsecurity.
In a letter on Thursday to Trump, the senators said the administration should halt issuing licenses until it provides Congress "a report outlining specific criteria for determining whether or not the approval of any license poses a national security threat."