Earlier this year, US President Donald Trump signed an executive order that put Chinese tech giant Huawei on its “Entity List”, effectively banning the company from doing business with any US-based company.
However, the ban was later delayed by 90 days during which the company was allowed to buy components made by the US companies in a bid to maintain existing networks and also for delivering software updates for existing Huawei devices. However, the company was restricted from placing new orders for parts and components from the US firms to build new devices without seeking license approvals.
Now as that 90-day reprieve is coming to an end, the US Commerce Department is expected to extend it nu another 90 days allowing Huawei Technologies to buy supplies from US companies so that it can service existing customers, claims a report.
A couple of months ago, in June, after successful talks with Chinese President Xi Jinping at G20 Summit in Japan, the US President Donald Trump allowed the American firms to keep doing business with Huawei. But nothing substantial has been done in this regard.
The announcement from Donald Trump contradicted the ban imposed by the US commerce department a few months ago. The trade ban forced various US companies to cut ties with the Chinese telecom equipment maker. As a result, Google also barred Huawei from using its services, including Android.
Many Huawei suppliers in the United States have requested special licenses to sell to the Chinese giant. Commerce Secretary Wilbur Ross had also confirmed late last month he had received more than 50 applications, and that he expected to receive more.
However, the company has been working to reduce its reliance on US-based companies. Huawei has launched its own operating system named HarmonyOS and is reducing the business it is doing with the United States.
(Source)
