Caught in trade war, Huawei may seize 90-day US trade reprieve to plan next moves
- US Commerce Department extends reprieve for Huawei until November 19
- Analysts say only a comprehensive deal between US and China will return Huawei to normal operations
US Commerce Secretary Wilbur Ross had earlier confirmed in a US television interview that Huawei’s “temporary general licence”, which would have expired on Monday, will be extended for another 90 days until November 19 and that another 46 affiliates of the Chinese company was added to the government’s trade blacklist.
The company remains banned from buying American parts and components to manufacture new products without a special Commerce Department licence.
“As we continue to urge consumers to transition away from Huawei’s products, we recognise that more time is necessary to prevent any disruption,” Ross said in the Commerce Department announcement.
“Simultaneously, we are constantly working at the department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General Licence”, he said, referring to the mechanism that allows US companies to continue buying and selling with Huawei despite the inclusion of the company and many of its affiliates on the list.
Shenzhen-based Huawei, which is also the world’s second biggest smartphone vendor, was initially issued that licence on May 20 after the company and its 68 non-US affiliates were placed under that trade blacklist over national security concerns. The aim of the temporary licence was to minimise disruption to the company’s existing networks and mobile services, which include many US rural networks.