Chinese tech giant, Huawei has been granted 3-month (90-day) extension to their temporary general license by the US Commerce Department. The new extension will run through February 16, 2020.
What does this mean for Huawei and American companies? It means they are allowed to do business for “components” that do not pose a threat to the National Security of the United States. Again, the US Commerce Department is yet to list or elaborate more on what does components are.
According to the document from the Department, Huawei will resume limited operations in the networks and equipment sector. And also in mobile services and cybersecurity research. Since being banned by the US Government in May, this is the third extension granted to Huawei by the Commerce Department. The drama doesn’t look like it will be ending anytime soon.
The US Commerce Secretary – Wilbur Ross said in a press statement that new extension license will be of great help to smaller carriers in remote areas within the country that makes use of Huawei telecommunications technology. Does this mean smaller carriers in these remote areas “don’t pose a threat to National Security”?
Judging by how things are going, one could argue that Huawei will keep getting these temporary trade extension until the US and China ends their trade disputes. There were even speculations that Huawei was going to get a 6-month extension. Well, maybe it’s been split into two, they get 3-month now and another 3-month come February 16, 2020. Whatever the case is, we’ll keep you updated as the story unfolds.