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Huawei Can Receive 90 More Days To Purchase US Parts For Pre-Order



Photo: Andy Wong (AP)

Although US Trade Penalties Are Still in effect, Huawei Technologies will have an additional 90 days to purchase from US companies so that it can finish working with existing customers, according to a Reuters report.

The largest telecommunications device provider in the world received a "provisional general license" shortly after the ban, which was originally set to expire on August 19. The US Department of Commerce will now allow these permits to continue until November, two sources familiar with the situation said.

In May, the Trump administration added Huawei and 68 of its affiliates to the list of legal entities in the Commerce Department amid concerns over national security that it could speak to Chinese spy networks. This measure restricts US companies from trading with a Chinese supplier, which forbids government approval (although some have devised a solution to sell them anyway). These sanctions, along with other US allegations of theft and fraud, coincide with the growing trade war between the US and China, prompting Huawei, who denies these accusations, to claim that the US is resorting to a smear campaign because its companies cannot to compete. [19659004] In July, President Donald Trump swam the opportunity to ease restrictions, though who has any idea what the word of the president means. The administration later made it clear that it intends to issue US trade licenses individually to companies, provided that "there is no threat to US national security", although what that means is yet to be determined. For his part, Huawei said that all these conversations have not changed much.

One source told Reuters that Chinese President Xi Jinping and Trump have a planned call this weekend to discuss Huawei, so that delay could still change before the initial deadline. Huawei did not immediately respond to Gizmodo's request for comment.

Even at the time of the reimbursement, the company will only be allowed to buy US service order parts made prior to the ban. Any production of new products will still require additional licensing from the US government.


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