President Donald Trump’s administration issued Huawei’s new license term for a two-week extension. Allowing US companies to continue to work with China’s Huawei Technologies.
Huawei’s new license term to work with US companies
The extension of about two weeks is much shorter than the previous ninety days. There is a longer extension is being prepared but has not yet been completed due to regulatory obstacles.
Huawei was added to the trade blacklist last May
It’s due to national security concerns, the US Department of Commerce. Which allowed it to buy some of the US-made goods in a move to minimize disruption to its customers. At which many of them are operating networks in rural America.
The announcement of the new extension
The latest extension is due to expire next week. Adding that the new extension will announce Huawei’s new license term on Monday, after the end of the previous extension.
A spokesman for Huawei, the world’s largest manufacturer of the communications network equipment, saying:
“The company does not comment on rumours and speculation”. The US Department of Commerce declined to comment on that.
US Commerce Secretary Wilbur Ross said on Friday that:
Some telecommunications companies in rural areas need temporary licenses and rely on Huawei equipment for 3G and 4G networks.
The trade war between the United States and China
This development comes amid discussions between the United States and China aimed at:
Reaching a tentative agreement to resolve the trade war that lasted for more than a year.
When we list Huawei, the US government said:
“We have a reasonable basis to conclude that Huawei engaged in activities that are contrary to US national security or foreign policy interests.”Huawei has repeatedly denied the accusations.
In May, President Donald Trump also signed an executive order declaring:
A national emergency banning US companies from using communications equipment provided by companies, that pose a threat to national security.
The Commerce Department was due to draw up the rescue plan by mid-October but did not publish After one of them.
The Commerce Department is considering whether to grant individual licenses to US companies as Huawei’s new license term is renewed. In order to sell components to Huawei after receiving more than 200 orders.