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US may grant Huawei 90-day trade reprieve

By Hugh Wilson

US companies will be able to trade with the blacklisted Chinese electronics giant for at least another three months, report says

US companies will continue to be able to do business with Chinese electronics giant Huawei for at least another 90 days, according to sources.

Reuters reports that the Trump administration is set to grant a further 90-day extension to a temporary licence that allows Huawei to trade with US firms. The Chinese company was blacklisted in May on national security grounds.

The move means Huawei will be allowed to continue buying some American-made goods, limiting potential disruption to its US-based customers.

Huawei makes telecoms infrastructure as well as consumer electronics. Many of its customers operate data networks in rural areas of the US.

US Commerce Secretary Wilbur Ross had hinted at the reprieve on Friday, remarking that rural networks relied on Huawei for 3G and 4G data.

“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 licences is to let those rural guys continue to operate,” Ross said.

The US Commerce Department has received over 200 requests from US companies for individual licences to sell components to Huawei.

The licence extension also comes at a delicate time in talks to end the ongoing US-China trade war. Hopes of a deal were raised over the weekend after “constructive” discussions.

FURTHER READING: Huawei results defy US sanctions

FURTHER READING: Huawei suffers as US security sanctions bite

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