Earlier this week, the US Department of Commerce announced that it will be extending the license which allowed US based companies to continue working with Huawei Technologies Co Ltd, the Chinese tech giant, until the 15th of May 2020.
For those unaware, Huawei was hit with a ban back in 2019, which had the company lose partnering rights with US based companies. But since then, special licenses were granted to companies that applied for it, to allow temporary collaboration with the Chinese electronics company. Now, it seems like Huawei has received another boon as the Trump administration has just extended the licenses till 15th May.
The original license was a temporary measure and had already been extended till 1st April 2020. Through the license, companies like Microsoft can continue providing their services to Huawei, like Window’s for laptops as an example. Although the ban was enforced, the US Commerce Department had allowed it to still purchase from US companies to avoid disruption in the market.
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Huawei is a leading figure in telecommunications and by its extension 5G networking. The company provides relatively more affordable equipment and tools and had already been providing the same for 4G modems to certain US telecom providers. So on a larger scale, banning Huwaei would have affected US customers. Thus, licenses were issued and the Commerce Department even made a public statement asking about the “impact on your company or organization if the temporary general license is not extended?”
This was mainly targetted at rural carries in America which provided services to customers in remotes region with the United States. Similar to Huawei, ZTE Corp was also designated as a national security risk. So, the move arrives as a breath of fresh air to Huawei that can see continued operations for a couple of months longer in the region.
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(Source)
