The Trump management is set to issue a 90-day extension of a license on Monday, allowing U.S. corporations to proceed to do business with China’s Huawei Technologies, two sources aware of the deliberations said.
A preliminary extension of around two weeks was anticipated, and a longer extension was in the works; however, it had not but been finalized attributable to regulatory hurdles. Over the weekend, the Trump management’s plans modified, and it now plans to renew the temporary extension for the same 90-day interval because it did in August, the sources stated.
After adding Huawei to an economic blacklist in May this year citing national security concerns, the U.S. Commerce Division has allowed it to purchase some American-made items in a step aimed at lessening disruption for its customers, many of which operate networks in rural America.
The extension will be declared on Monday when the earlier release is set to expire, the sources mentioned. The sources refused to be recognized as the extension has not been publicly introduced.
A spokesperson for Huawei, the world’s biggest telecom network gear maker, stated Friday the corporate doesn’t comment on rumors and speculation. The Commerce Division declined to comment.
Commerce Secretary Wilbur Ross told reporters on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks.
The development comes amid talks between the U.S. and China aimed at coming to an initial settlement to resolve a 15-month old trade conflict.