Tuesday, 19 November 2019 10:43

Huawei gets another 90-day reprieve to trade with US firms Featured

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Huawei gets another 90-day reprieve to trade with US firms Pixabay

Chinese telecommunications equipment vendor Huawei Technologies had been granted another 90-day extension to work with American firms, giving the Shenzhen-based company until 16 February 2020 to work with US companies.

Huawei was initially given 90 days in May to work with American firms after the government placed the company on its Entity List, which prevents any business being done unless it is approved on a case-by-case basis.

That 90 days ran out in August and was extended again for a like period. Had it not been extended again, it would have run out on Monday.

In a statement, US Commerce Secretary Wilbur Ross said in a statement: "The Temporary General Licence extension will allow carriers to continue to service customers in some of the most remote areas of the US who would otherwise be left in the dark.

“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.”

The US and China have been engaged in a trade war since last year, with tit-for-tat tariffs being imposed on various good by both Washington and Beijing.

In the event of a trade deal being reached before 16 February, the terms of the Huawei agreement are likely to change.

Numerous small Internet service providers who provide access to rural and regional customers in the US have Huawei equipment in use, due to its lower price and better functionality.

The latest 90-day extension is intended to help these providers who would otherwise face a big financial burden if they had to switch equipment.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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