Huawei trade ban deferred by US government for 90 days
The Chinese telecoms firm will be able to trade with US companies until November
The US government’s trade ban against Huawei will not come into effect until November, a new report from Reuters has revealed. The Department of Commerce has formally extended its temporary allowance of trading between Huawei and US companies, although the former still requires a special license to work with the latter.
The 90-day extension comes after the allowance was due to end on 19 August. However, the report suggests that the temporary window is being extended so that the Chinese telecoms giant can still serve existing customers amid the US-China trade row. Huawei handsets are used worldwide, and the decision means that the firm can continue to roll out software updates and cater to customers despite the spat.
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If the trade ban does come into effect, it would prevent Huawei from doing business with US-based company Google, potentially precluding it from making use of Android – the operating system Huawei handsets currently run. Without access to its entire operating system, the future of Huawei’s brand is left in the lurch.
The recent rolling out of Harmony OS, Huawei’s own-brand operating system was expected to be an alternative to Android. This turned out not to be the case: Harmony OS looks more like a platform for IoT networks than a full-blown Android alternative.
It should come as no surprise to learn that US business makes up a hefty proportion of Huawei’s international dealings. Reuters reports that of the $70 billion (£58 billion) Huawei spent on components last year, $11 billion (£9 billion) was spent in transactions with US companies, including Intel and Qualcomm.
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The current extension will see Huawei’s grace period extended to 17 November of this year. It comes as a welcome change of tack for the firm, which was previously blacklisted by the US government, preventing it from conducting any kind of business with US companies. The Trump administration cited national security concerns as the reason for carrying out the measure, before eventually reneging on the decision back in May 2019.
We will be updating this page as and when we hear more information regarding the future of Huawei’s business in the US, so be sure to check back in.
