Business· TMT

U.S. issued 90-day temporary license to contain their impact after banning Huawei

minutes 2019/05/21 06:29:55
US China trade war, Huawei 90 day license

May 21, 2019 (China Knowledge) - The U.S. Commerce Department is lowering their restrictions imposed last week to Huawei Technologies. This provided a buffer for the ripple effect across telecommunications and network-related businesses.

The 90-day “temporary general license” is effective until Aug 19, will allow sales and services provided to Huawei and affiliates to support existing Huawei handsets, existing networks and equipment. The license applies to maintenance arrangements made between Huawei and customers up to May 16 for existing networks and equipment.

However, Huawei will still face obstacles in buying American components to manufacture new products, given that license approvals will mostly be denied.

Commerce Secretary Wilbur Ross said, on Monday, the 90-day license "grants operators time to make other arrangements and the Department space to determine the appropriate long-term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services." He added that "In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks."

Since President Donald Trump launched his executive order last week, many technology companies are pulling back their business ties with Huawei. German chipmaker Infineon suspended their shipments to Huawei. Google blocked their technical support and updates for Huawei handsets powered by the Android operating system.

Huawei handsets, that are available to the public on or before May 16, are allowed to receive software updates or patches under the 90-day period, according to the temporary general license posted Monday. Mobile devices that yet to be released are not covered.

The U.S. also gave approval to cybersecurity risk disclosures to Huawei and affiliates as needed for 5G standards development.

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