The US government has extended the general licence regime for American companies doing business with Huawei for another 90 days. This will allow the many rural operators using Huawei equipment to continue to operate, despite Huawei remaining on the Entity List of banned companies, according to the Bureau of Industry and Security (BIS) of the US Department of Commerce.
Huawei was added to the Entity List in May after the US found the company was a threat to national security due to its alleged ties to the Chinese government. US-based firms are banned from doing business with firms on the list without a specially granted licence. Nevertheless, the US agreed to allow Huawei to work with US companies under limited conditions for several months after the decision, so it can provide general maintenance and updates for existing customers, while they transition to other suppliers.
This is the third 90-day reprieve granted Huawei since the company was first black-listed. The previous period expired on 18 November. Huawei said the general licence regime "won't have a substantial impact on Huawei's business either way.""This decision does not change the fact that Huawei continues to be treated unfairly either," the company said in a statement. Huawei added that the decision to put it on the Entity List "has caused more harm to the US than to Huawei" while "undermining the mutual trust on which the global supply chain depends."
Apart from general maintenance, US companies need to request a special licence from the BIS in order to sell to Huawei. The Commerce Secretary said recently that his department received 260 requests for the licences and expected to grant the first examples very soon. A return to full sales access for Huawei on the US market will likely depend on the US and China striking a new trade agreement.
