HUAWEI gets another reprieve from the Trump Administration, with its temporary general licence extended by another 90 days!
Here is the full story, and what it means for HUAWEI and their business partners in the US and elsewhere!
The First HUAWEI Temporary General Licence
Just days of adding HUAWEI to the Entity List of US national security threats, the Trump Administration issues HUAWEI a 90-day temporary licence.
This partially restored their access to US technology and suppliers. It basically allows them to service and maintain their current networks and smartphones.
Establishing new networks or create new products, using technologies with more than 25% US content or origin, would require companies to apply for special licences from the US Commerce Department.
HUAWEI Licence Extended By 90 Days!
HUAWEI’s first temporary general licence was slated to expire today, on 19 August 2019.
But Trump had been signalling that he was open to extending HUAWEI’s licence, after he delayed new tariffs on Chinese goods until 15 December.
That was confirmed today when the US Commerce Department announced that it was extending the temporary general licence for HUAWEI, by another 90 days.
“As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” said Secretary of Commerce Wilbur Ross. “Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”
This means HUAWEI will be able to continue supporting existing networks and devices up till 19 November 2019.
Can HUAWEI Can Launch New Devices With Licence Extension?
With the HUAWEI Mate 30 smartphones slated for launch very soon, this is a very important question – can HUAWEI launch new devices based on Android and its ecosystem?
The temporary general licence that was specifically issued to HUAWEI does not permit the use of US technologies (of more than 25% origin or content) in new HUAWEI devices without a special licence.
However, it buys HUAWEI and its business partners time to request special licences to sell their products or services to HUAWEI.
US Commerce Secretary Wilbur Ross confirmed that he received more than 50 applications last month, with more coming in.
It is actually very important for many US companies to continue to do business with HUAWEI, who spent some $11 billion on US products and services in 2018.
More HUAWEI Affiliates Added To Entity List
It was not all good news though. The US Commerce Department also announced that it was adding 46 additional HUAWEI affiliates to the Entity List, due to national security concerns.
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