On Monday, Trump administration will be issuing a 90-day extension of a license allowing U.S. companies to do business with Huawei Technologies Co. Ltd.
According to a report on Friday, the administration is planning around a two-week extension and a longer extension which had not yet been finalized. They are planning to renew the temporary extension, similar to the one they did in August, or the same 90-day period.
In May, the U.S. added Huawei to economic blacklist after citing national security concerns. In order to minimize disruption for its customers, the U.S. commerce department has allowed it to purchase some American-made goods which operate networks in rural America. The extension will be announced on Monday before the earlier reprieve expires.
On Friday, Wilbur Ross, commerce secretary told Fox Business Network that some rural carriers depend on Huawei for 3 and 4G networks for the temporary licenses. He further added, that there are enough problems with telephone service in the rural communities and they don’t want to ignore them. Hence, the main purpose of the temporary general licenses is to let rural people continue operating.
While blacklisting Huawei, the U.S. government said that they have a reasonable basis against Huawei to conclude that they are engaged in activities. As these activities violate the U.S. national security or foreign policy interests.
Last week, William Barr, Attorney General, said that both Huawei and ZTE Corp. cannot be trusted. He backed his statement by a proposal. This proposal bars the U.S. rural wireless carriers from making equipment or service purchase worth $8.5 billion dollars from the government funds.
In May, President Trump barred the U.S. companies from using telecommunications equipment of companies posing a national security risk by signing a deal declaring a national emergency. The commerce department was given the responsibility to draw up a plan by mid-October but they have failed to comply.
After receiving more than 200 requests, the Commerce Department is considering to grant individual licenses to the U.S. firms to sell Huawei components.