Huawei gets reprieve to do business with USA companies

Ruben Fields
November 18, 2019

It required USA companies to get a license to do business with Huawei, which faces national security concerns due to its cozy relationship with the Chinese government.

The Department of Commerce has again extended the temporary general license allowing American companies to sell to Huawei, the embattled Chinese tech company.

It had been reported that the United States government was considering a two-week temporary extension followed by a longer period but the regulatory work involved was considered hard.

The Trump administration is giving American companies another three months to do business with the Chinese telecom giant Huawei, the Commerce Department said Monday.

The department blacklisted Huawei following a May executive order from President Donald Trump that effectively banned the company from United States communications networks.

"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".

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The extension will be announced Monday, when the earlier reprieve is set to expire, the sources said.

Huawei didn't immediately respond to a request for comment on the extension.

Commerce Secretary Wilbur Ross told Fox Business Network on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks.

In May, President Donald Trump also signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk. The US Department of Commerce was instructed to come up with an enforcement plan by mid-October, but that is yet to be published.

The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei after receiving more than 200 requests.

Huawei's chief financial officer, Meng Wanzhou, who is also the daughter of the company's founder and CEO, was arrested in Canada previous year and is now fighting extradition to the United States on fraud and conspiracy charges tied to USA sanctions. No action on that regard is expected on Monday.

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