Published: Mon, November 18, 2019
Electronics | By Kelly Massey

Huawei to receive another reprieve on Monday

Huawei to receive another reprieve on Monday

President Donald Trump in May effectively barred Huawei from American communications networks after Washington found the company had violated USA sanctions on Iran and attempted to block a subsequent investigation.

The U.S. government is letting American businesses work with Chinese tech giant Huawei for another three months, in a third delay to a ban enacted in May for national security reasons. Over the weekend, the Trump administration's plans changed and it now plans to renew the temporary extension for the same 90-day period as it did in August, the sources said.

In what appears to be a concession to Chinese demands surrounding the phase-one trade deal, the Trump Administration will allow United States companies to continue doing business with China's Huawei for another two weeks.

Reuters on Sunday reported the planned 90-day extension after the Trump administration initially planned a short-term two-week reprieve, but ran into bureaucratic issues and opted instead to issue another 90-day extension.

Huawei said Monday the extension "won't have a substantial impact on Huawei's business either way".

Huawei is able to do business with United States companies for another 90 days.

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The department blacklisted Huawei following a May executive order from President Donald Trump that effectively banned the company from USA communications networks.

Huawei didn't immediately respond to a request for comment on the extension.

Commerce Secretary Wilbur Ross told Fox Business Network on Friday: "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 general licenses is to let those rural guys continue to operate", Ross said.

The Trump administration says Huawei's networking equipment carries risks to U.S. national security because its telecommunications gear could be used for spying by Beijing. The Commerce Department was directed to draw up an enforcement plan by mid-October but has yet to publish one.

The development comes at a time when the trade war between America and China is nearing its first anniversary. No action on those was taken on Monday.

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