Huawei, China’s foremost telecom business, has been given another extension to do business with US companies, according to Department of Commerce (DOC) Secretary Wilbur Ross.
Huawei which was black listed on the US DOC ‘entry list’ since last May but given a 90 day reprieve until August 19th has been given another 90 day reprieve until December 15th in order for US rural telecommunications companies to have more time to replace Huawei products which supplies several of the providers with parts and equipment. Rural telecom companies have been desperately trying to figure out how to replace Huawei equipment and lobbying the White House for more time.
Ross said the US government recognizes that more time is needed for consumers to transition away from Huawei products and to prevent any disruption.
Huawei was thrust into the middle of the US China trade war after trade talks broke down in May and the company was required to obtain US government approval in order to buy American technology and products.
President Trump’s decision is based on Huawei’s potential to being a national security threat to the US, with being used by the Chinese government’s espionage efforts and with the possibility of disrupting US telecommunications infrastructure should a conflict arise between the two countries.
Trump at one time hinted he would yield the ban on Huawei if the Chinese government would purchase American far products but so far no such idea has come forth.
Trump continues to warn the nation that Huawei is a company that American businesses should not do business with at all.
Although the US government will apply levies on more Chinese imports beginning September 1st, some tariffs on toys and electronic will be delayed until December and for the first time since 1994, China was labeled as a currency manipulator. China plans to retaliate.
Trump says that inspite of the tension between their two counties, he and China’s President Xi Jinpingwere planning to talk and continue to have trade negotiations.
Both Republicans and Democrats in Congress have been urging the President to continue with his hardline on Huawei. Strong disapproval could be met from both parties if the ban were lifted completely.