NEW YORK – The US Department of Commerce’s Bureau of Industry and Security (BIS) has said it will allow some companies to continue to do business with Huawei under specific conditions, days after placing the Chinese company on its “entity list” in order to effectively bar the phone maker from sourcing components from US tech giants.
Reuters reported Tuesday that the BIS would issue a temporary general license (TGL) to Huawei and its 68 affiliates to authorize some US telecom companies to continue to engage in export transactions with Huawei for the next 90 days.
“The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,” Commerce Secretary Wilbur Ross said in a statement.
The move followed a ban on Huawei Technologies from buying US goods last week, a major escalation in the trade war between the world’s two top economies.
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The two countries increased import tariffs on each other’s goods over the past two weeks after US President Donald Trump said China had reneged on earlier commitments made during months of negotiations.
Washington says the Chinese firm was involved in activities contrary to (US) national security.
https://twitter.com/Huawei/status/1129042741059575808
What’s next for Huawei?
Now Huawei’s limited license is only in effect through August 19, 2019. The permit allows the company to work with US firms to support current customers. The Shenzhen-based company will be able to maintain business relationships with Google, Intel, Qualcomm, and others to release software updates to existing hardware.
This 90-day general license is also good news for some smaller regional networks that rely on Huawei’s infrastructure.
However, if the relationship between Huawei and the US doesn’t change, the Entity List’s restrictions will go back into full effect.
Huawei, the second largest smartphone vendor in the world, recorded 59.1 million shipments in the first quarter of 2019.
