Earlier this May, Huawei, the world’s second-largest smartphone maker was banned from doing business with US companies. This forced partners like Google, Qualcomm and Intel to cut ties with the Chinese OEM. However, the US government then announced a delay in the ban for 90 days effective until August 19th. Now, the US Commerce Department has extended the trade license for another three months. This means that Huawei will get another 90-day extension to trade with the US tech companies.
Wilbur Ross, US Commerce Secretary said in a statement, ‘The US will extend for another 90 days a narrow set of exemptions that had protected rural networks and other US customers from a ban on doing business with China’s Huawei Technologies. Some telecom companies in the US are “dependent” on Huawei, and thus a 90-day reprieve was deemed appropriate’.
“We’re giving them a little more time to wean themselves off,” he added. The commerce department placed a further 46 Huawei subsidiaries to the US entity list, a blacklist of firms with which the US will not trade.
The new temporary extension will be in effect until November 17th. The reprieve gives Huawei another 90-day window to buy components from US suppliers in order to serve existing smartphone and telecom customers amid the US-China trade dispute. The decision also means that Huawei can continue to roll out software updates on its smartphones worldwide.
According to a Reuters report, out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel, and Micron Technology. It is also claimed that US President Donald Trump and Chinese President Xi Jinping will discuss the Huawei ban this week. Huawei was blacklisted by the US amid security allegations over the company’s smartphones and network equipment.
However, Huawei has been anticipating a response like this from the US government and the company announced its own operating system called HarmonyOS earlier this month.