A couple of days ago, speculations regarding Huawei's temporary trade license renewal were circulating. It was expected that the Chinese tech giant would be granted a six-month extension allowing it to trade with U.S. companies to a certain extent.
On Monday the U.S Commerce Department announced that it had decided to extend Huawei's Temporary General License for a period of 90 days leading up to expiry on February 16, 2020. The renewed license permits Huawei to carry out 'specific, limited engagements in transactions involving the export, re-export, and transfer of items'.
Wilbur Ross, the U.S. Secretary of Commerce, commented on the move:
“The Temporary General License 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 will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”
Ever since the trade skirmish with the U.S. first started, Huawei has been having a rough time of it. After the Chinese firm was added to the Entity List, it has had to rely on a temporary trade license issued by Bureau of Industry and Security of the U.S. Commerce Department to carry out business operations in America. Interestingly, despite receiving the temporary trade permit and being allowed to do limited business, Huawei was not removed off the Entity list.