What you need to know
- As per a new report, the Commerce Department may soon grant a six-month reprieve that will allow U.S. firms to do business with Huawei.
- The current temporary general license, which was granted in August, is set to expire on November 18.
- U.S. firms are expected to receive licenses to trade with Huawei "very shortly."
Commerce Secretary Wilbur Ross had recently confirmed that U.S. firms will soon be granted licenses that will allow them to sell non-sensitive components to Huawei. Now, a new report from Politico claims the Commerce Department is likely to soon grant a six-month reprieve that will permit U.S. companies to do business with Huawei until May next year.
The Commerce Department had given Huawei a second 90-day reprieve in August this year, which is set to expire on Monday. If the report is accurate and Huawei does get another reprieve, it will be able to push software updates to its phones at least until May 2020. However, it will still not be able to push Google services to the Mate 30 series and Mate X, which were certified after the U.S. blacklisted the company in May.
Extension of the "temporary general license" will also make it possible for internet service providers in rural U.S. to purchase parts and software from Huawei. What the temporary general license doesn't cover, though, is supply of microchips from U.S. companies to Huawei.
Companies like Qualcomm and Micron will have to wait until the U.S. government grants them licenses before they can resume shipments of 'non-sensitive' goods to Huawei. U.S. chipmakers have argued that export of semiconductors to Huawei does not pose a security threat.
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