SINGAPORE/WASHINGTON (Reuters) – The U.S. Department of Commerce is expected to account for the extension of a suspension is given to the Huawei Technologies, which enables the Chinese company to buy supplies from AMERICAN companies, so as to maintain existing customers, two sources familiar with the situation said.
A FILE PHOTO of A Huawei logo is pictured at the Shenzhen International Airport in Shenzhen, Guangdong province, China, on July 22, 2019. (REUTERS photo/Aly Song, File/Photo
The “temporary general license” that will be extended for a Smartphone in 90 days, the sources said.
The trade in the first instance, allowed Huawei to buy some American-made goods in May, shortly after putting on the “black list” of the company, in a move aimed at minimising the disruption for customers, many of which will work with the networks in the rural areas of the united states.
An extension to the renewal of the agreement will expire on the 19th of August, in the continuation of the Chinese company, the ability to take care of the maintenance of the existing telecommunication networks and the provision of software updates, latest Huawei mobile phones.
The conditions of the licence, which has grown to become an important bargaining chip for the United States in its negotiations with China, and it remains in the liquid, and the decision to continue on with the Huawei ascend delay may change, ahead of the Monday deadline, the sources said.
The US President, Donald Trump and Chinese President Xi Jinping are expected to discuss and Huawei, in an interview this weekend, one of the sources said.
Huawei had no immediate comment. China’s ministry of foreign affairs does not immediately respond to a faxed request for comment.
When the us Department of Commerce blocked Huawei from buying U.S. goods this year, it was seen as a major escalation in the trade war between the two top economies.
The US government is in the black list, and Huawei claims that a Chinese company has been involved in activities contrary to the national security or foreign policy interests.
As an example, black cited in a criminal case is pending against the company in federal court for allegations that have been made for Huawei violated U.S. sanctions on Iran. Huawei has pleaded not guilty in the case.
The it should be noted that the prosecution also accused Huawei of “misleading and obstructive acts”.
At the same time, the United States, says a Huawei ascend smart phones, and network equipment used by China to spy on Americans, and the allegations the company has repeatedly rejected.
The world’s largest telecommunications equipment maker, is prohibited from purchasing U.s. parts and components for the manufacture of a new product without any additional special licenses.
Many Smartphone vendors have applied for the special licenses to sell to the company. The Minister of commerce Wilbur Ross told reporters at the end of last month that it had received more than 50 applications, and he expects more to receive them.
Of the $70 billion that the Smartphone is spent on the purchase of the component 2018, as the $11 billion went to US companies, including Qualcomm, Intel, and Micron Technology.
The Commerce Department’s release on Friday, declined to comment, referring to Ross ‘ comments on CNBC television earlier in the week, in which he said that the existing licences are in force until Monday.
Asked whether they would be extended, he said: “On Monday, I will be happy to tell you.”
Reporting by Keith Zhai in Singapore, and David Shepardson in Washington; Editing by Chris Sanders and Muralikumar Anantharaman