US President Donald Trump extended for another year the executive order signed in May 2019 declaring a national emergency and barring US companies from using telecommunications equipment made by firms posing a national security risk, Reuters reports. The order targets Chinese firms such as Huawei and ZTE, making it impossible for them to do business with American firms without seeking a special licence.
The US Commerce Department is also expected to extend again a licence, set to expire on 15 May, allowing US companies to keep doing business with Huawei, a person briefed on the matter told the news agency. This 90-day reprieve has been extended repeatedly over the past year to allow the Chinese company to provide basic maintenance and updates for its products and give US companies time to seek alternative suppliers.
In March, the Commerce Department sought public comments on whether it should issue future extensions and asked the industry what the impact would be if the temporary general license was not extended. The Commerce Department also asked about the costs associated with ending the licenses.
The mobile industry group CTIA urged the department to approve a long-term license extension, writing in its submission to the consultation that "now is not the time to hamper global operators’ ability to maintain the health of the networks". The group argues that "ongoing, limited engagement with Huawei to protect the security of equipment and devices in the market benefits American consumers by reducing the risk that they will be subject to device compromise".
The Commerce Department and Huawei declined to comment.
