• Wednesday, February 21, 2024

Huawei to do business in the USA for 3 more months

In May this year, Huawei was banned from trading with US companies. It did get better though, since the company received a temporary permit just a few days later. The 90 days have passed, and the permit ends today.

According to Reuters, the US Commerce Department will extend the trade license for another three months. Hopefully, this will be enough time for the United States and China to reach an agreement in their ongoing trade disputes.

None of the sides have made official statements on the matter, which is why Reuters has quoted “two sources familiar with the situation”. Huawei is currently held in somewhat of a hostage situation in the talks between the two countries. Presidents Donald Trump and Xi Jinping are expected to discuss the future of Huawei later this week.

Commerce Secretary Wilbur Ross stated that more than 50 companies have applied for special licenses to distribute to Huawei in the past three months. Out of $70 billion that Huawei spent for components in 2018, around $11 billion went to US companies like Qualcomm, Intel, and Micron, mostly for memory chips for its smartphones and 5G antennas.