- US Commerce Secretary Wilbur Ross confirmed to Fox Business on Monday the US is granting Huawei a second 90-day licence following its blacklisting.
- This will mean US firms can continue doing business with the Chinese phone maker for the time being.
- The firm was placed on an “entity list” over national security firms in May, and was initially given 90 days to help customers with the transition.
- President Trump told reporters he doesn’t want to do business with Huawei “at all.”
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US Commerce Secretary Wilbur Ross announced on Monday that the US is giving Huawei another 90 days before it is properly blacklisted from doing business with American firms.
The Department of Commerce placed Huawei on an “entity” list back in May, which bars American firms from doing business with the company without obtaining permission from the government. These licenses are thought to be difficult to procure.
Shortly after the ban was announced, the US granted Huawei a 90-day licence to help its customers transition. That licence was due to run out today.
Reuters reported Sunday that another licence was expected to be implemented, and Ross confirmed this to Fox Business on Monday morning and gave some extra detail.
“It is another 90 days for the U.S. telecom companies,” Ross said. “Some of the rural companies are dependent on Huawei. So we’re giving them a little more time to wean themselves off. But no specific licenses are being granted for anything,” said Ross. He said the next deadline would be around November 19.
In spite of the reprieve, the Commerce Department has added 46 more Huawei subsidiaries to the entity list.
“We now have more than 100 subsidiaries on the entity list,” Ross said. “Adding more entities makes it more difficult for Huawei to get around the sanctions.”
Exactly where the US stands on Huawei has become muddier and muddier.
President Trump told reporters on Sunday that he doesn’t want to do business with the Chinese firm “at all,” having said at the G20 summit in June that US firms would be able to sell to the company.
In a statement sent to Business Insider, Huawei expressed its discontent with the announcement.
“We oppose the US Commerce Department’s decision to add another 46 Huawei affiliates to the Entity List. It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security. These actions violate the basic principles of free market competition. They are in no one’s interests, including US companies. Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership. We call on the US government to put an end to this unjust treatment and remove Huawei from the Entity List,” said a Huawei spokeswoman.
“The extension of the Temporary General Licence does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way,” she added.
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