Trump administration gives 90-day extension for US companies to continue business with Huawei
Huawei store
The Trump administration is set to issue a90-dayextensionof alicenseon MondayallowingUScompanies to continue doing business with China'sHuaweiTechnologies Co Ltd, twosourcesfamiliar with the deliberations said.
Reuters reported Fridaythat an initialextensionof around two weeks wasexpectedand a longerextensionwas in the works but had not yet been finalized due to regulatory hurdles. Over the weekend, the Trump administration's plans changed and it now plans to renew the temporaryextensionfor the same90-dayperiod as it did in August, thesourcessaid.
After addingHuaweito an economic blacklist in May citing national security concerns, theUSCommerce Department has allowed it to purchase some American-made goods in a move aimed at minimising disruption for its customers, many of which operate networks in rural America.
Theextensionwill be announced Monday when the earlier reprieve is set to expire, thesourcessaid. Thesourcesdeclined to be identified as theextensionhas not been publicly announced.
A spokesman forHuawei, the world's biggest maker of telecom network equipment, said Fridaythe company does not comment on rumours and speculation. The Commerce Department declined to comment.
Commerce Secretary Wilbur Ross told Fox Business Network on Fridaythat some rural carriers need the temporarylicenses and are dependent onHuaweifor 3G and 4G networks.
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"There are enough problems with telephone service in the rural communities - we don’t want to knock them out. So, one of the main purposes of the temporary generallicenses is to let those rural guyscontinue to operate," Ross said.
The development comes amid discussions between the United States and China aimed at coming to an initial agreement to resolve a trade war that has lasted for over a year.
In blacklistingHuawei, theUSgovernment said it had a "reasonable basis to conclude thatHuaweiis engaged in activities that are contrary toUSnational security or foreign policy interests."Huaweihas repeatedly denied the accusations.
Last week, Attorney General William Barr saidHuaweiand ZTE Corp "cannot be trusted," as he backed a proposal to barUSrural wireless carriers from tapping an $8.5 billion government fund to purchase equipment or services from them.
In May, President Donald Trump also signed an executive order declaring a national emergency and barringUScompanies from using telecommunications equipment made by companies posing a national security risk. The Commerce Department was directed to draw up an enforcement plan by mid-October but has yet to publish one.
The Commerce Department is also considering whether tograntindividuallicenses forUSfirms to sell components toHuaweiafter receiving more than 200 requests. No action on those isexpectedon Monday.