US Commerce Department extends reprieve allowing companies to sell to Huawei

Andrew Cummings
August 20, 2019

The first reprieve was granted after the Trump Administration signed an executive order that prevented US companies from purchasing telecommunications equipment from foreign companies that were considered a national security risk.

Shortly after the ban was announced, the Commerce Department granted Huawei a 90-day stay of execution in a move it said was created to "minimize disruption" for its customers.

Monday's move to extend Huawei's trade license means the Chinese company can continue to buy US-made parts used in its phones and network equipment, and that United States telecommunications companies can continue to buy Huawei's equipment.

The US Department of Commerce has announced another 90-day extension to firms who would wish to continue trade with Huawei. US intelligence agencies claim Huawei devices could possibly be used to transfer spyware for the Chinese communist government. The company said the extension "won't have a substantial impact on Huawei's business either way".

As part of the blacklist designation against Huawei, the USA cited a pending federal criminal case accusing Huawei of violating the US prohibition against business transactions with Iran.

In all, more than 100 Huawei subsidiaries have been placed on the Entity List, which makes it harder for the Chinese to circumvent the sanctions.

Meanwhile, Trump added he spoke with Apple Inc's Chief Executive Tim Cook about the impact of US tariffs on Chinese imports as well as competition from South Korean company Samsung Electronics Co Ltd.

"At a strategic level, the US entity list is helpful to Huawei", said Ren.

"We're actually open not to doing business with them", Mr. Trump said on Sunday.

"Huawei is uh, a company we may not do business with at all..." It tried to develop own operating system to extricate from the reliance on Google's Android.

At the time, the US exempted a narrow list of products and services. Moreover, Huawei's Mate 30 Pro and Mate X launch plans might be severely impacted.

As TechRadar reports, several American tech firms have been lobbying the USA government to change its approach, as U.S. companies will lose significant revenue streams that relied on supplying Huawei.

At the same time, he said he was adding 46 Huawei affiliates to the so-called "Entity List" - a list of companies effectively banned from doing businesses with US firms - raising the total number to more than 100 Huawei entities covered by the restrictions.

Huawei did not immediately comment Monday.

The U.S. Commerce Department has granted another stay of execution to Chinese technology giant Huawei Technologies Co. The trade ban forced various United States companies to cut ties with the Chinese telecom equipment maker.

Other reports by iNewsToday