USA grants temporary reprieve to Huawei, easing trade tensions

Huawei Technologies is still prohibited from buying American parts and components to manufacture new products without additional licence approvals

Report: US expected to give Huawei another 90-day export license

Several media outlets reported on Friday that the U.S. commerce department was expected to extend a reprieve given to Huawei Technologies Co Ltd that permitted the Chinese firm to buy supplies from usa companies so that it could service existing customers.

In May, the Trump administration added Huawei and 68 of its affiliates to the Commerce Department's Entity List amid national security concerns that it could be conspiring with Chinese spy networks. The U.S. government gave chipmakers and technology companies a 90-day extension to sell products to technology giant Huawei. As the White House continues to reverse positions on Huawei, the Chinese company's fortunes become less and less dependent upon the whims of the administration and access to the USA market. Once more this begs the question that, if it's reasonable to expect U.S. consumers to take at least six months to wean themselves off what little Huawei gear they had been able to get hold of, why this wasn't taken into account when the announcement was first made. "But there are no specific licenses being granted for anything".

"At this moment, it looks much more like we're not going to do business", Trump said.

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However, Mr Ross added a further 46 Huawei affiliates would now be added to the US Entity List, a blacklist of firms with which the US will not trade. Larry Kudlow, National Economic Advisor, said the US Commerce Department has agreed to extend Huawei's stay by another three months to continue working with US companies in the interest of US firms because the Chinese company is a big customer.

The temporary licence has enabled USA tech firms such as Google to continue trading with Huawei - which uses Google's Android operating system to power its smartphone line-up. It recently launched its own operating system HarmonyOS that can be used on smartphones in case Huawei loses access to Google's Android.

At the time of writing, neither the US Commerce department nor Huawei offered any comment. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more.

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Of US$70-billion that Huawei spent buying components in 2018, about US$11-billion went to USA companies.

Huawei is yet to comment on this recent announcement.

This comes as a relief for Huawei. The extension will last 90 days, and is a repeat of the previous 90-day extension, granted back in May. But others in the administration seem inclined to use Huawei sanctions as a lever in ongoing trade negotiations. Shortly after, the Chinese firm was allowed to purchase some American-made products.

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