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Microsoft Granted U.S. License to Export Software to Huawei

Jenny Leonard and Dina Bass

(Bloomberg) -- Microsoft Corp. got a license to do business with Huawei Technologies Co., a step that lets the software giant continue selling some of its most important products to a Chinese company that was blacklisted by the U.S. government earlier this year.

“On Nov. 20, the U.S. Department of Commerce granted Microsoft’s request for a license to export mass-market software to Huawei,” the Redmond, Washington-based company said in a statement on Thursday. “We appreciate the department’s action in response to our request.”

It was not immediately clear how “mass-market” is defined in the license and the company declined to elaborate beyond the statement. Microsoft sells Windows and Office software to Huawei.

This week, the U.S. Commerce Department started granting licenses to some U.S. companies that supply Huawei, one of the biggest makers of smartphones and computer-network equipment.

“We’ve had 290-something requests for specific licenses,” Commerce Secretary Wilbur Ross said in an interview with Fox Business Network on Tuesday. “We’ve now been starting to send out the 20-day intent-to-deny letters and some approvals.”

In May, the U.S. added Huawei to an entity list to block U.S. companies from selling components to China’s largest technology company, which it accuses of threatening America’s national security. Huawei has denied those claims.

The entity listing requires U.S. firms to get a government license to sell to blacklisted firms. That has dented revenue at some U.S. companies and sown confusion about what is allowed and what isn’t. Technology industry leaders and their lawyers have pushed for clarity for months.

Microsoft President Brad Smith complained in September that the U.S. was treating Huawei unfairly and refusing to explain why Huawei shouldn’t be allowed to purchase U.S. technology, including Microsoft software.

A bipartisan group of senators requested that U.S. President Donald Trump suspend the approval of licenses. Doing business with Huawei poses “a serious threat to U.S. telecommunications infrastructure and national security more broadly,” the lawmakers said. They also asked that Congress be given a report outlining the criteria for determining whether or not each license would pose a threat.

(Updates with details on Microsoft products in third paragraph.)

To contact the reporters on this story: Jenny Leonard in Washington at jleonard67@bloomberg.net;Dina Bass in Seattle at dbass2@bloomberg.net

To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Jillian Ward

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