It’s happening again. Huawei has just been given another 90-day extension of its license. Actually, this provision is really more for American firms doing business with the Chinese OEM. This extension only means these companies can continue whatever deal they have with Huawei. During the first extension, we mentioned it was being done so there will be no disruption in telecommunications. This extension also means Huawei can still buy supplies from American companies. No matter how you look at the license extension, both sides will benefit from the decision.
Instead of a two-week reprieve, another 90-day extension has been given by the Trump government. The company is still on the economic blacklist which meant US firms need permission to do business with the brand. The decision was handed down by the U.S. Commerce Department who is actively working on the regulations.
In a statement, U.S. Commerce Department’s Secretary Wilbur Ross said: “The Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark. The Department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”
The decision is to once again allow networks to serve consumers, especially in rural areas. The department still has to mention “national security”, referring to Huawei who may be threatening it.
Huawei still insists that it is being “treated unfairly”. The extension may not have an impact on business though because it is still doing good despite the restrictions. Trump’s declaration and the department’s decision has actually “caused more harm to the U.S. than to Huawei”.
An enforcement plan has yet to be published by the Commerce Department. There’s only this 90-day extension. Hopefully, that will give them time to finish work or make a decision about what needs to be done.