The US government is preparing to issue another 90-day extension on a licence which allows domestic companies to do business with Chinese vendor Huawei, Reuters reported.
The move comes after Reuters reported on Friday (15 November) the government was only in a position to issue a two-week extension, coinciding with the expiration of a previous extension of 90 days which was issued in August and is due to expire today (18 November).
However, the situation appears to have changed over the weekend, and it will now grant another 90 day reprieve, said sources.
The US government issued a licence which allowed Huawei to buy some US made goods in May, after it added the company to an economic blacklist on national security grounds.
The ban prevents the Chinese vendor from sourcing software and components from US companies.
US President Donald Trump however indicated earlier this year he would be willing to ease restrictions, and the US Commerce Department is looking at issuing longer-term permits to companies wishing to do business with Huawei on a case-by-case basis.
At the start of the month, commerce secretary Wilbur Ross said the government had received 260 applications for these permits, and it would soon issue the first approvals.Subscribe to our daily newsletter Back