American firms cleared to do business with Chinese tech titan until the new year
The US government has granted a 90-day extension to the licence allowing Huawei to trade with US firms.
Earlier this year the federal government cited national security concerns as being behind its decision to place the Chinese vendor placed on its so-called ‘entity list’ of companies that cannot trade with US businesses. The absolute restrictions were relaxed shortly thereafter with the implementation of a 90-day Temporary General Licence (TGL), designed to allow Huawei’s reseller and telco partners to continue to support the vendor’s installed base across the US.
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A further 90-day extension to the TGL was announced this week by the US Bureau of Industry and Security and the Department of Commerce. The agreement allows Huawei to fulfil “specific, limited engagements in transactions involving the export, reexport, and transfer of items”.
US secretary of commerce Wilbur Ross said: “The Temporary General Licence extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark. The Department [of Commerce] will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”
The UK government’s long-awaited final decision on whether or not to allow Huawei to take part in the construction of this country’s 5G network has been delayed until after the election.