Home International Relations Huawei gets 90-days license extension

Huawei gets 90-days license extension

File photo of President Donald Trump
File photo of President Donald Trump

After adding Huawei to an economic blacklist in May, the US Commerce Department has allowed it to purchase some American-made goods. Besides, the USA has also extended its license by 90-days.

The extension aims to minimize disruption for its customers as many of them operate networks in rural America.

On Monday, the Trump administration issued a new 90-day License extension. The extension will allow the US companies to continue doing business with China’s Huawei Technologies Co Ltd [HWT.UL].  Importantly, the US regulators continue crafting rules on telecommunications firms resulting in national security risks.

On Sunday, Reuters reported that Trump administration initially planned a short-term two-week reprieve. However, they ran into bureaucratic issues. Hence, chose to issue another 90-day extension.

The U.S. Commerce Secretary Wilbur Ross in a statement said, “The Temporary General License extension will allow carriers to continue.” Furthermore, “This will provide service to customers in some of the most remote areas of the United States who would otherwise be left in the dark.”

Additionally, “The Department will continue to rigorously monitor sensitive technology exports.” Importantly, the surveillance will “ensure that our innovations are not harnessed by those who would threaten our national security.”

Significantly, the US Commerce Department added Huawei to its “Entity List” in May. Interestingly, they have concluded that the company is engaged in activities “contrary to US national security or foreign policy interests.”

In this regard, Huawei said that the extension “won’t have a substantial impact on Huawei’s business either way.” Moreover, “This decision does not change the fact that Huawei continues to be treated unfairly either.”

Besides, the company argued that the decision to “add Huawei to the Entity List has caused more harm to the US than to Huawei.” Moreover, “This has done significant economic harm to the American companies with which Huawei does business.”

Importantly, the Commerce Department was directed to draw up an enforcement plan by mid-October but has yet to publish one.

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