The United States plans to issue a 90-day permit extension of the license to Chinese electronics giant Huawei today (18 November) that will enable it to continue to conduct its business with American companies. In Reuters, released on Friday, stated that the expected initial extension of two weeks, because longer benefits were delayed because of regulatory hurdles. However, a new report from the New York Times, anonymous sources said that the confirmation of renewing for 90 days, reportedly came at the weekend.
The US government has added Huawei to its economic blacklist back in may, citing concerns about violations of national security. However, the Commerce Department allowed Huawei to continue the purchase of American-made goods in August, and the deadline ends on 18th November. Official renewal has yet to be announced, while Huawei and the Ministry of Commerce refused to comment on the rumors.
An official statement about allowing Huawei to continue to do business with American companies is to help rural carriers to stay in business. Most small companies use Huawei and ZTE equipment to reduce costs. The government does not want to put pressure on these smaller operators who are already trying to provide continuous connectivity in rural areas. Wilbur Ross, the U.S. Secretary of Commerce, on Friday issued a statement to Fox Business Network, which stated that some rural operators use Huawei for 3G and 4G. Establishing a permanent ban on Huawei violate the telecommunications in rural America.
The development comes at a time when a trade war between America and China is approaching its first anniversary. For anybody not a secret that the US government plans to extend a license to Huawei because it is a huge bargaining chip in its trade war with China. Although Huawei is not an official part of the negotiations, it is expected that the US government will retain control of the company, at least until the completion of the first phase of the negotiations.
U.S. attorney General William Barr, in his statement last week, said: “Huawei and ZTE cannot be trusted” because it supported the proposal of prohibiting wireless carriers the United States to use the state Fund in the amount of 8.5 billion dollars for the purchase of services or equipment from the Chinese Duo. President Donald trump has signed an Executive order in may prohibiting American companies to buy telecommunications equipment from companies that pose a threat to its national security. The U.S. Department of Commerce was requested to prepare a plan for compliance by mid-October, but it’s not published yet.
The Ministry of Commerce is also considering more than 200 requests for issuance of individual licenses to American companies, allowing them to sell the components of Huawei. Monday no action in this direction is not expected.