US signals it may end trade extensions for HUAWEI

The US trade ban against Huawei means that many US firms are barred from dealing with the Chinese manufacturer. But the government has repeatedly issued extension periods, allowing HUAWEI to deal with select US companies and maintain its network infrastructure in the country.

Now, Reuters reports that HUAWEI has been given another 45-day extension, coming after the last 45-day extension on February 14. The previous extension was due to expire at the end of March.

The outlet also reports that the US Commerce Department is seeking public comment on whether it should continue dishing out extensions to HUAWEI. It’s believed that the department is asking what would be the “impact on your company or organization if the temporary general license is not extended?”

A failure to extend HUAWEI’s grace period would likely mean that rural networks with HUAWEI infrastructure would suffer, for starters. But the FCC has previously proposed a reimbursement program that would help foot the bill for any qualifying network providers using HUAWEI or ZTE equipment.

It’s unclear whether companies that have already received a license to deal with HUAWEI would be affected if the US government discontinues extensions. Microsoft is one prominent firm that has received a green light to deal with the manufacturer, selling Windows licenses and other software to HUAWEI. A Google executive recently revealed that it’s also applied for a license to deal with the Chinese firm.

Are you expecting the US/HUAWEI situation to improve or deteriorate in 2020? Give us your thoughts below.