The US Department of Commerce’s Bureau of Industry and Security has extended the temporary licences for trading with Huawei again. The bureau also opened a consultation on possible future extensions, beyond the current deadline of 15 May.
Huawei was added to the BIS's so-called Entity List in May 2019, after the US found the company was a threat to national security due to its alleged ties to the Chinese government and violations of US sanctions. 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 fourth reprieve granted Huawei since the company was first black-listed. The BIS said the latest extension was needed to give it time to conduct the public consultation. It's seeking public comments by 25 March on the continuing need for, and scope of, possible future extensions of the temporary general licence regime for Huawei. It's interested in whether any other changes may be warranted to the temporary licensing, or if alternative authorisations or regulatory provisions may more effectively address the needs of the temporary licences.
The previous three extensions were intended to allow time for companies to shift to alternative sources of equipment, software and technology and reduce their reliance Huawei. The shorter current extension, at 45 days versus 90 days previously, "demonstrates the Department is trying to find a permanent solution", the commerce department said in a statement.
Last month, the FCC started collecting information from telecom operators on how much they expect it to cost to replace equipment from Huawei and ZTE in their networks. The US Senate also approved USD 1 billion in funding to help small operators source new kit.
