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20 October
Sunday

World

US weakened sanctions on Huawei

The Commerce Department will allow the company to purchase American products to support communications and software updates

Photo: Reuters

/NOVOSTIVL/ The United States has temporarily eased trade restrictions on China’s Huawei to minimize disruption for its customers, a move the founder of the world’s largest telecoms equipment maker said meant little because it was already prepared for U.S. action. This article appeared in the Reuters.

The U.S. Commerce Department blocked Huawei Technologies from buying U.S. goods last week, a major escalation in the trade war between the world’s two top economies, saying the firm was involved in activities contrary to national security.

The two countries increased import tariffs on each other’s goods over the past two weeks after U.S. President Donald Trump said China had reneged on earlier commitments made during months of negotiations.

On Monday, the Commerce Department granted Huawei a license to buy U.S. goods until Aug. 19 to maintain existing telecoms networks and provide software updates to Huawei smartphones, a move intended to give telecom operators that rely on Huawei time to make other arrangements.

Huawei is still prohibited from buying American-made hardware and software to make new products without further, hard-to-obtain licenses.

The temporary license suggests changes to Huawei’s supply chain may have immediate, far-reaching and unintended consequences for its customers. The Commerce Department said it will evaluate whether to extend the license period beyond 90 days.

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