On Monday, the US Department of Commerce announced that they would once again extend a temporary license for Chinese tech giant Huawei, which serves to loosen restrictions on business deals for 90 days.
The extended license allows “specific, limited engagement in transactions involving the export, report and transfer of items,” to Huawei and its non-US affiliates, according to the department.
After the US put Huawei on the Bureau of Industry and Security (BIS) of the US Department of Commerce’s Entity List in May, which would have restricted the sale or transfer of US tech to the company, a 90-day temporary license was issued on May 20 to alleviate part of the restrictions.
The latest extension, which ends on November 19, may be the final one. In an interview with Fox Business on Monday, Commerce Secretary Wilbur Ross said, “Some of the rural companies are dependent on Huawei, so we’re giving them a little more time to wean themselves off.”
READ MORE: Trump Threatens China With New Tariffs on Consumer Goods
The Department of Commerce also added another 46 Huawei subsidiaries to the US Entity List, telling Fox it’s “the big news today.” This brings the total number of Huawei affiliates on the Entity List to over 100. Ross noted that by adding more subsidiaries to the list it would “make it for difficult for Huawei to get around the sanctions.”
Huawei responded on Monday, stating “It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security," according to Xinhua.
Meanwhile, China and the US have planned teleconference meetings over the next week and a half, according to the White House National Economic Council director Larry Kudlow. Trump also tweeted on Monday “We are doing very well with China, and talking!” Whether these negotiations can be ironed out prior to Huawei’s extension remains to be seen, but would be a clear indicator on just how political the Huawei ban really is.
[Cover image via Wikimedia]
0 User Comments