Last month, the US softened its trade ban on Huawei after President Donald Trump said he will allow US companies to sell their technology and equipment to Huawei. The Chinese company has now been provided with a 90-day extension of this general license, thus allowing it to do business with US-based companies.
The news comes from US Commerce Secretary Wilbur Ross who said that the US will grant Huawei another extension of 90 days to do business with its suppliers in the US. The extension is based on the Temporary General License which offers Huawei three more months to purchase goods from US companies and stock them to give service to its existing customers, reports Reuters.
The new 90-day extension will end on November 19 after the US government clarified that the extension is merely meant to “afford consumers across America the necessary time to transition away from Huawei equipment”.
Wilbur Ross said “The 90-day extension is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat. As we continue to urge consumers to transition away from Huawei’s products, we recognise that more time is necessary to prevent any disruption. We’re giving them a little more time to wean themselves off”.
Along with the extension, the US Department of Commerce has also added 46 more affiliates of Huawei to its Entity List, which now has over 100 different organisations and individuals. This Entity List bars Huawei and its subsidiaries to do any business with companies in the US.
Facing the heat of the ban, Huawei has also been questioned about its role in the upcoming 5G trials. While the US has been requesting India to opt against purchasing 5G telecom equipment from Huawei for security concerns, the Indian government has, meanwhile, decided to penalise Indian companies who will supply US technologies to Huawei.