US extension of Huawei export permit in doubt - Mobile World Live

US extension of Huawei export permit in doubt

19 AUG 2019

An expected reprieve giving Huawei more time to purchase goods from US companies is in doubt after President Donald Trump said he does not “want to do business at all because it is a national security threat”, Reuters reported.

The news agency quoted Trump as saying: “At this moment it looks much more like we’re not going to do business.”

The US Department of Commerce (DoC) was expected to extend the 90-day permit, which expires today (19 August), with the President’s chief economic adviser Larry Kudlow previously confirming the temporary general licence had been extended, Financial Times wrote.

Huawei was rocked in May after the DoC added it to a list which prohibits US companies from selling goods to the vendor. However, a week later the department eased the export ban, issuing a licence to allow companies to continue doing business with Huawei for 90 days, giving customers time to line up other suppliers.

In June, Trump appeared to reverse the original ban following talks with Chinese President Xi Jinping, and commerce secretary Wilbur Ross then confirmed licences would be issued in cases where there was no threat to national security.

Facing a political backlash for apparently overturning the block, Kudlow emphasised at the time Huawei had not been freed from trade sanctions, insisting the move was “not a general amnesty”.

He said the most likely course of action would be the DoC issuing “some temporary additional licences” covering more general equipment.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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