US grants 90-day trade extension to Huawei; Allows them to buy from US firms

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The United States government recently granted Huawei another 90 day trade extension, allowing them to buy from US companies such as Google, Intel, Qualcomm, and more.

The first permit ended on Monday, August 19, 2019. The extension was announced by US Commerce Secretary Wilbur Ross, despite President Trump suggesting that no such reprieve be granted to the Chinese company.

According to the source, the 90-day extensions is “intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat.”

Despite the decision, Huawei claims that it won’t have a substantial impact on Huawei’s business either way.

Also Read: Google suspends some business with Huawei

The US government also added 46 Huawei affiliates to their Entity List, effectively banning these from doing business with US companies. In total, more than 100 Huawei companies are now on the list.

“It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security,” the Chinese company said in a statement sent to the press. 

Last May, Huawei was banned by the US government from transacting with US firms. It was later relaxed with a 90 day reprieve, which ended on August 19, 2019. In 2018, Huawei spent over USD 11 billion on US firms and chip companies like Intel, Qualcomm, and Micron Technologies.

Source: Reuters

Bryan is a geek at heart and a tech enthusiast by choice. He has a strong background in corporate communications, marketing services, and customer relations having worked in the telecommunications and banking sectors for over two decades. In his spare time, he enjoys watching clips on YouTube and binge watching shows on Netflix.

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