The Trump administration is planning to extend a deadline marking the end of Chinese tech giant Huawei’s ability to purchase from American companies after U.S. tech firms expressed their concerns with the ban.
It was reported on Saturday that Huawei will receive a “temporary general license” that will allow U.S. firms to continue doing business with the company for 90 days even as the Trump administration accuses Huawei of violating U.S. sanctions against Iran.
Huawei purchased $70 billion worth of components last year, including some $11 billion from U.S. firms.
The company’s existing license was set to expire on Monday. Tech companies pushed the White House for months to extend the license and allow U.S. firms to continue to sell to Huawei, a major player in the global 5G mobile market which many companies are entering for the first time.
In a meeting with President Trump late last month, CEOs of Google, Intel, Cisco and other corporations challenged the administration to ease his restrictions on Huawei.
“The CEOs expressed strong support of the President’s policies, including national security restrictions on United States telecom equipment purchases and sales to Huawei,” a White House spokesperson said last month following the meeting.
“They requested timely licensing decisions from the Department of Commerce, and the President agreed. The group was also optimistic about United States 5G innovation and deployments,” the spokesperson added.
Democrats have urged Trump to stay firm and enforce his administration’s restrictions.
“Huawei is one of few potent levers we have to make China play fair on trade,” Senate Minority Leader Charles Schumer (D-N.Y.) said in July. “If President Trump backs off, as it appears he is doing, it will dramatically undercut our ability to change China’s unfair trade practices.”
Do you agree with this move in the trade conflict with China? We look forward to seeing your comments in the section just below this article.