The extension would enable Huawei to maintain existing telecommunications networks and provide software updates to its handsets.

U.S. Commerce Secretary Wilbur Ross has recently announced that the government has decided to extend a reprieve offered to Chinese telecom giant Huawei Technologies which permits it to purchase supplies from U.S. firms so that it can offer services to its current customers, even as nearly 50 of its units are added to the U.S. economic blacklist.

According to sources, the ‘temporary general license’, which is about to expire in August, will be extended for 90 days for Huawei. Moreover, around 46 Huawei affiliates will be added to the Entity List, raising the total number of company entities that are affected by these restrictions to over 100.

Commenting on the move, Ross said that the extension was mainly targeted towards supporting U.S. customers, many of whom who operate networks in rural America. He claims that the department is basically giving them more time to wean themselves off.

Reportedly, after blacklisting Huawei, the Commerce Department initially permitted the Chinese firm to purchase some U.S. goods to minimize disruption for its customers. As for the recent extension, the agreement would further Huawei’s ability to sustain its existing telecommunications networks and offer software updates to its handsets.

For the uninitiated, the U.S. government recently blacklisted Huawei, alleging it for being involved in activities contrary to national security or foreign policy interests. The blacklisting order also included a pending federal criminal case concerning Huawei violating U.S. sanctions against Iran. Moreover, the indictment accused Huawei of obstructive and deceptive actions.

Currently, Huawei is still prohibited from buying American parts and components to manufacture new products without additional special licenses. Owing to this restriction many Huawei suppliers have requested special licenses to sell supplies to the firm.

According to Ross, recently the department has received over 50 applications, and is expected to receive more in the coming days. However, he claims that no specific licenses have been granted.

Source Credit: https://www.cnbc.com/2019/08/19/us-grants-huawei-another-90-days-to-buy-from-american-suppliers-ross.html