HUAWEI gets another 90-day license extension to do business with American firms

As per the latest news, the US government is extending another 90 days allowing the US firms to continue doing business with HUAWEI, despite the ban on the Chinese firm.

Earlier this year, the US Department of Commerce blacklisted HUAWEI on national security ground, preventing American companies from doing business with the company.

As per the crafted rules, it has limited HUAWEI’s access to important components and Android OS, as well. This 90 days extension aims to minimise disruption for its customers, where most of them operate from rural America.

“The Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark,” US Commerce Secretary Wilbur Ross said.

According to HUAWEI, the extension would not have a substantial impact on HUAWEI’s business either way. “This decision does not change the fact that HUAWEI continues to be treated unfairly either,” the Chinese firm said.

As per the reports, the administration of President Donald Trump had initially planned a two-week reprieve but ran into bureaucratic issues. Considering yet another change, the ban is now set to take effect after February 16th, 2020.

“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,” Ross said in a statement on Monday.

On the other hand, HUAWEI said the decision to add it to the entity list had caused more harm to the US than to HUAWEI. Notably, the Commerce Department is also considering whether to grant individual licenses for US firms to sell components to HUAWEI after receiving more than 200 requests. However, no action was taken on those on Monday.

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