Huawei Gets A Temporary 90-Day License To Procure From US Suppliers

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The Commerce Department may extend the temporary reprieve granted to Huawei, which allows it to purchase its supplies from the US companies, enabling it to service its existing customers, state reliable sources. Huawei will have its temporary license extended by another 90 days, as per these sources. Commerce Department had permitted Huawei to buy a few American-made products during May after the firm was blacklisted, in order to minimize disruption of services for its users. Many of Huawei’s users run networks in many rural regions.

The agreement is set to terminate on Aug 19. An extension could let Huawei maintain existing telecom networks & issue software updates. The atmosphere surrounding the issue of this license remains fluid as of now. It has turned into a major bargaining chip, used by the US during its trade talks with China. The Huawei extension could easily go the other way since no one’s on firm ground. Trump and Jinping will be discussing Huawei during their scheduled call, which will be held this weekend. The US Commerce Department blocking Huawei’s ability to purchase US-made products was viewed as an escalation of trade tensions between the two economic giants.

The USA alleged that Huawei was engaging in activities that were contrary to foreign policy or national security interests. For instance, the blacklist order cited cases pending against Huawei, which alleged that Huawei had violated US sanctions against countries like Iran. However, Huawei reiterated that it had done no such thing. It is also claimed that Huawei’s network equipment and smartphones could be utilized by China for spying on US citizens, another allegation that Huawei has strongly denied. Huawei is prohibited from purchasing American components and parts for manufacturing new goods without special licenses.

Multiple suppliers catering to Huawei have asked for special licenses that would enable them to sell products to the company. Wilbur Ross, the Commerce Secretary stated that over 50 applications had been received in June alone, with more to come. Ross stated that a decision would be taken and communicated by Monday.

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