US Granted Huawei A 90-Day Extension On The Temporary License, For The Third Time

Dhir Acharya - Nov 19, 2019


US Granted Huawei A 90-Day Extension On The Temporary License, For The Third Time

This means US companies can continue doing business with Huawei for another while. Is it true that the US is going easy on the Chinese giant?

For the third time, the US Commerce Department has extended the temporary license that allows US companies to do business with Chinese firm Huawei. The first license extension came in May, the second time was in August, and now the reprieve will last another 90 days.

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The Department of Commerce blacklisted Huawei after US President Donald Trump signed an executive order in May that effectively banned the Chinese giant from the country’s communications networks. The ban required US firms to obtain a license if they want to do business with the Chinese company, which faces concerns over national security due to the cozy relationship it has with the Chinese government.

According to a release from Commerce Secretary Wilbur Ross, with the Temporary General License, carries will be able to maintain their services with customers in some extremely remote areas in the country, otherwise, they will be left behind. He added that the Department would continue to monitor sensitive tech exports to make sure that US innovations aren’t harnessed by parties that threaten its national security.

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And even an extension cannot help Huawei overcome the largest challenge from the ban, which is losing Google apps on its new smartphones. Alphabet, the parent company of Google, revoked the Android license from the Chinese firm, leaving it with just the OS’s open-source version.

It’s said that it will take Huawei’s alternative operating system HarmonyOS years to match Google’s service and app suite.

On Monday afternoon, Democratic Senator Chuck Schumer expressed concerns about this extension through his tweets, implying that the Commerce Department and President Trump’s actions are not consistent with their national security concerns. He emphasized that each day Trump goes easy on Huawei, it’s like a signal for the Chinese Communist Party that they can keep hurting American jobs as well as threatening the country’s security with no repercussions.

Huawei didn’t respond immediately to a comment request on the matter.

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