Published: Fri, August 09, 2019
Finance | By Loren Pratt

US Senator Rubio urges Trump to bar exceptions to Huawei ban

US Senator Rubio urges Trump to bar exceptions to Huawei ban

U.S. tech companies have urged the White House to allow them to resume the sales, and some found ways to restart some shipments to Huawei without violating the Entity List restrictions.

Beijing has yet to place any restrictions on its rare earth supplies to the U.S.

The delay in licensing shook technology stocks.

However, that promise was contingent upon China beefing up its purchases from American farmers, which Trump has complained the country has failed to do. And it is one other blow to tech companies hurt by the latest hike in tariffs on the Chinese goods as announced by President Donald Trump last week. A report that Washington was delaying a decision about allowing some trade between USA companies and Huawei again spooked Asia.

China's foreign affairs and commerce ministries did not immediately respond to faxed requests for comment.

American technology companies that had hoped to soon resume sales to Huawei may have to keep waiting.

The Chinese tech giant is offering what it's calling "five times your normal wage, and a world class working environment",.as Huawei's new talent recruitment plan reflects its determination to stand up against Washington's sanctions.

U.S. chipmakers such as Intel, Qualcomm, and Broadcom sent their chief executives to meet with President Trump in July in a bid to accelerate the process of obtaining licenses to sell to Huawei.

Background: The U.S. Commerce Department placed Huawei on its Entity List in May, effectively blocking U.S. exporters from selling equipment to the company without obtaining a license. "China trade dispute remains a risk, and this risk is not receding". China customs is due to report its July rare earth export data on Thursday.

The Commerce Department's preliminary finding comes just a week after Washington announced new punitive duties on another $300 billion in Chinese goods, meaning that starting September 1 all Chinese imports will be subject to punitive tariffs.

Huawei also faces moves from Washington to blacklist the Chinese tech firm citing national security concerns, cutting it off from American-made components it needs for products - though it was issued a 90-day reprieve in May.

The offshore yuan was stable versus the dollar in early trade but could be closely watched as traders assess the latest developments in the rapidly escalating trade war between the United States and China.

Based on these rates, US customs agents will begin collecting duties from importers. -China trade conflict jitters encouraged demand for safe-haven currencies, while the euro shrugged off a breakdown in Italy's governing coalition and the prospect of new elections.

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