Insider Business U.S. set to give Huawei another 90 days to buy from American...

U.S. set to give Huawei another 90 days to buy from American suppliers – Reuters

The U.S. Commerce Department is expected to extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers, two sources familiar with the situation said.

The “temporary general license” will be extended for Huawei for 90 days, the sources said.

Commerce initially allowed Huawei to purchase some American-made goods in May shortly after blacklisting the company in a move aimed at minimizing disruption for its customers, many of which operate networks in rural America.

An extension will renew an agreement set to lapse on August 19, continuing the Chinese company’s ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.

The situation surrounding the license, which has become a key bargaining chip for the United States in its trade negotiations with China, remains fluid and the decision to continue the Huawei reprieve could change ahead of the Monday deadline, the sources said.

U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss Huawei in a call this weekend, one of the sources said.

Huawei did not have an immediate comment. China’s foreign ministry did not immediately respond to a faxed request for comment.

When the Commerce Department blocked Huawei from buying U.S. goods earlier this year, it was seen as a major escalation in the trade war between the world’s two top economies.

The U.S. government blacklisted Huawei alleging the Chinese company is involved in activities contrary to national security or foreign policy interests.

As an example, the blacklisting order cited a criminal case pending against the company in federal court, over allegations Huawei violated U.S. sanctions against Iran. Huawei has pleaded not guilty in the case.

The order noted that the indictment also accused Huawei of “deceptive and obstructive acts”.

At the same time the United States says Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

The world’s largest telecommunications equipment maker is still prohibited from buying American parts and components to manufacture new products without additional special licenses.

Many Huawei suppliers have requested the special licenses to sell to the firm. Commerce Secretary Wilbur Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more.

Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm , Intel and Micron Technology.

The Commerce Department late on Friday declined to comment, referring to Ross’s comments to CNBC television earlier this week in which he said the existing licenses were in effect until Monday.

Asked if they would be extended he said: “On Monday I’ll be happy to update you.”

REUTERS

Top Stories

Updated: Apliki fire extinguished

  A fire which broke out near Turkish-held Lefka and spread to the buffer zone near Apliki has been completely contained, the Forestry Department has...

Labour Ministry opens applications for May 13-June 12 support schemes

  Applications for period 3  (May 13-June 12) of the Labour Ministry's support schemes for businesses, employees and the self-employed have been posted online. In an...

Government condemns vandalism at Limassol mosque

  The government condemns in the strongest manner the vandalism at the Köprülü Mosque in Limassol, government spokesman Kyriakos Koushios said on Monday. "Such actions that...

Limassol: Biker killed in road collision

  A 35 year old biker was killed in a road collision in Limassol on Monday afternoon. He was named by police as Yiorgos Haritou from...

Five more test positive to Covid-19, three from repatriations

The Health Ministry announced five new Coronavirus cases today from a total of 1504 tests, bringing the total number in Cyprus to 949. Dr Leontios...

Taste

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...

Spiced lamb with beetroot salad and scented yoghurt

Lay the lamb on a tray, skin side down. Rub with crushed garlic, sprinkle with spices and ground pistachios, wrap in plastic wrap and...

Easy seafood pasta with white wine sauce

Ingredients: 2-3 tbsp olive oil 1 garlic clove, chopped 2-3 tablespoons of whipped cream 1/3 cup white wine 300g spaghetti, roughly broken 300-400g of...

Traditional salads that will blow your mind away

This traditional salads will make you actually love salads! Cyprus may be famous for souvla and kleftiko but if you try the traditional salads with...