US extends licence for companies doing business with Huawei
New 90-day extension comes as US prepares rules on telcos that pose national security risks
The Trump administration has granted an extension for US companies to do business with blacklisted Chinese telecoms group Huawei as regulators continue to hammer out rules on companies that pose national security risks and negotiators strive for progress in trade talks.
The Commerce Department and Bureau of Industry and Security announced on Monday they issued a new 90-day extension allowing US companies “specific, limited engagements” with Huawei and its non-US affiliates.
The Trump administration in May put the Chinese company on an economic blacklist, citing worries the group poses a national security risk. This barred it from buying inputs crucial to the manufacture of its telecommunications equipment, including purchasing semiconductors from US companies, such as Qualcomm, and from using Google’s Android operating system in its smartphones.
Huawei’s addition to the so-called entity list means American companies needed to obtain a licence from the US government to sell technology to the Chinese group. Today’s announcement is the latest in a series of 90-day extensions the Commerce Department has issued since May allowing Huawei to purchase some US-made goods in order to minimise disruption for its customers.
“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,” commerce secretary Wilbur Ross said in the statement on Monday.
“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,” he added.
The action against Huawei in May came amid a tense time in trade negotiations between the world’s two largest economies. A move by the US to put tariffs on about $300bn in Chinese imports not already subject to levies was met at the time with retaliatory action from China.
Earlier this year, President Donald Trump said he wanted the US to win the race for ultra-high speed telecommunications, known as 5G, through competition and “not by blocking out currently more advanced technologies”. That was widely seen as referring to Huawei.
The US’s national security establishment had pushed other countries to bar Huawei from 5G networks. Australia and Japan have joined the US in barring Huawei from involvement in 5G, while New Zealand’s intelligence services have expressed concern. The UK and Germany had indicated they will allow Huawei to provide equipment for their 5G networks.