This is the fifth extension that the Commerce Department has granted Huawei since the company was put on the "entity list" in May last year.
What you need to know
- The U.S. Commerce Department has granted Huawei a fresh 45-day reprieve.
- It had previously extended the temporary license granted to Huawei until April 1.
- The Commerce Department is reportedly also seeking public comments on whether it should continue issuing such extensions to Huawei.
The U.S. Commerce Department had extended the temporary general license granted to Huawei and its subsidiaries for 45 days last month, allowing them to continue trading with select American firms until April 1. It has now issued a new 45-day extension to the Chinese company.
The latest extension will help ensure minimal disruptions for carriers in rural America, who rely on Huawei for their wireless networks. According to Reuters, however, the U.S. Commerce Department may not continue to issue similar extensions in the future.
The Commerce Department has reportedly sought public comments on whether it should continue extending the temporary general license granted to Huawei in the future. It is trying to determine the costs associated with ending license extensions and the impact that it will have on U.S. companies and organizations.
In case the department decides to stop issuing any further extensions, it could possibly make it difficult for some rural carriers to continue to service remote areas of the U.S. However, the Congress had passed legislation last month to reimburse carriers with fewer than 2 million customers who replace Huawei or ZTE equipment.
U.S. companies were barred from using telecommunications equipment made by companies considered to pose a national security risk after President Donald Trump signed an executive order. The Trump administration has also been trying to convince several foreign governments to bar Huawei from building their 5G networks.
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