The United States brings, once again, the Huawei can in the bottom left on the street
The announcement is good news for Huawei and for American tech companies, referring to it as an important customer. The Commerce Department also said that the extension is largely developed to rural U.S. wireless provider, the the use of Huawei’s affordable devices in their networks. But it is the isolation of Huawei, which has worked, and still is, to be less dependent on American components in the face of pressure from the United States, in an increasingly independent Chinese tech-giant.
“The Department will continue to monitor sensitive technology exports to ensure that our innovations are not used by those who threaten our national security,” Commerce Minister Wilbur Ross said in a statement Monday.
The trump card-the government says Huawei network equipment carries risks for the national security of the United States, because the telecommunications-could the equipment be used for spying by Beijing. The U.S. government has also denied Huawei of the plinth, the accused afford sanctions and the stealing of intellectual property from U.S. companies, all of the claims that Huawei is steadfast.
In may, the Commerce Department says Huawei on the “Entity List”,” a trade blacklist, makes it illegal for American companies to do business without a license. But the move posed a serious threat to its American suppliers — Huawei, the largest Telecom company in the world, the second largest smartphone manufacturer, and it buys for tens of billions of dollars in products from US companies each year. The action also weighed in on Huawei smartphone sales.
was known Soon after the Entity-action list, the Commerce Department granted the temporary General license. It American companies are allowed to sell certain products that do not pose a security risk, Huawei, such as software updates and micro-chips to be used for the older Wi-Fi devices. It was extended for the first time, in August. On Monday, the announcement of the third 90-day iteration of the license, which will expire in February.
Earlier this month, Ross Bloomberg TV said that to sell more perpetual licenses for each company, Huawei would come “soon.” He said the trade had received the Ministry of the 260 applications for such licenses. The Commerce Department did not respond immediately to a request for comment on the current status of each of the licences.
Also in terms of the ability to do business with Huawei, a group of around 40 small wireless Carrier in the rural United States that have built their networks with the Chinese company’s equipment. Those who say carriers, it could take billions in costs and months to rip the Huawei devices and replace it. The temporary General license pushes the time bar to do for you, and one way could be to buy time until Congress could pass, a law would make proposals in September to provide $1 billion to help those vehicles, to replace the Chinese equipment.
“Temporary General license extension allows the carrier to continue the customers in some of the most remote areas of the United States that would otherwise be left in the dark,” Ross said in the Monday statement.
The news comes as a breakthrough in US-China trade deal in which Huawei is involved, remains just out of reach. To expect a President Donald Trump and the Chinese head of state Xi Jinping have been a sign of a partial trade deal for about a month, although the negotiations on the final text of the deal hit another snag in the last week.
In the meantime, Huawei has worked to become less dependent on American components for its products in the pressure of the US government does not subside. The company announced in August, to replace its own operating system, a backup plan, Google’s Android. It has also sets its own smartphone chip.
All Huawei could make in an international tech players, also competes directly with American companies, instead of relying on their technology for their success. Some fear that could be a threat to the American dominance in the tech industry.
“When someone in the government believes that Windows would create on a laptop sold to Huawei a national security risk for the United States, then this is of course something we want to, said to talk about it … but we don’t think that this is the case,” Microsoft President Brad Smith, CNN is Poppy Harlow last month. Microsoft has to sell an application for an individual license Huawei.
“right now, it is not a Chinese competitor for the PC operating system space,” said Smith. “Is it really in the United States in the economic interest of creating not only an incentive, but the need to go, create a Chinese operating system? Because, if it is created, it will compete with us around the world.”
For its part, Huawei says that the extension of the temporary General license will have little impact on business and argues that it should begin placed on the Entity list.
“This has significant economic harm to American companies, where Huawei does business, and has already disrupted cooperation and undermine the mutual trust on which global supply chain depends,” Huawei said in a statement. “We urge the U.S. government to put an end to this unjust treatment and to remove Huawei from the Entity list.”