WASHINGTON (Reuters) – The Trumpet of the administration is to launch a two-month extension of a license agreement allowing AMERICAN companies to do business with China’s Huawei Technologies Co Ltd [HWT.UL], two sources familiar with the discussions 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 extension of around two weeks is a lot shorter than the previous 90-day extension and a longer extension is in the works as well, but it has not yet been completed due to regulatory hurdles, said a source who was briefed on the matter.
After the arrival of the Smartphone in an economic black-list in May, citing national security concerns, the U.s. Commerce Department has allowed for the purchase of certain U.s.-made goods 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.
The extension will be announced on Monday, and if the earlier delay was set to expire, the sources said, declining to be identified as the extension has not been publicly announced.
A spokesman for Huawei, the world’s biggest maker of telecom-network equipment, said the company doesn’t comment on rumors and speculation. The Commerce Department declined to comment.
The Minister of commerce Wilbur Ross told Fox Business Network on Friday that some of the national carriers, it must have a temporary license, and subject to the Huawei mobile 3G and 4G networks.
“There have been plenty of problems with the telephone service in the rural communities, and we don’t want to knock them out. So, it is one of the main purposes of a temporary general license, it is for this country the boys continue to work,” he said.
The development comes in the midst of talks between the United States and China, aimed at coming to an initial agreement to resolve a trade war that has lasted for more than a year ago.
In a “black list” drawn up by Huawei, the U.S. government said that it had a reasonable basis on which to conclude that Huawei was engaged in activities that are contrary to U.S. national security or foreign policy interests”. Huawei, the allegations have repeatedly been denied.
Attorney General William Barr said on Thursday, Huawei, and ZTE Corporation. (000063.SERIES) “are not to be trusted, as he backed a proposal to bar U.S. rural wireless carriers, the taps of the $8.5 billion the government established a fund for the purchase of equipment or services provided by them.
In May, the President when He signed an executive order declaring a national state of emergency and a blockage of the AMERICAN companies in the use of telecom equipment made by the companies a national security risk. The us Department of Commerce, it was due to the preparation of a block plan, in mid-October, but it has not yet been published.
The Department of Commerce is considering whether to grant individual licenses for U.S. companies to sell component parts to the Smartphone, after it received more than 200 applications.
Reporting by Steve Holland and David Shepardson; Additional reporting by Kanishka Singh in Bengaluru and Kenneth Li in New York; Editing by Sandra Maler and Edwina Gibbs