Date
19 June 2019
Huawei has been allowed to buy American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets, but it still cannot purchase US parts and components to make new products. Photo: Reuters
Huawei has been allowed to buy American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets, but it still cannot purchase US parts and components to make new products. Photo: Reuters

US eases some curbs on Huawei to keep mobile networks operating

The US government on Monday eased some restrictions imposed last week on China’s Huawei Technologies to help limit unintended consequences on third parties.

The Commerce Department will allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets, Reuters reports.

The Chinese telecoms equipment giant is still prohibited from buying American parts and components to manufacture new products without license approvals that likely will be denied, according to the report.

The roll back, which is in effect for 90 days, suggests changes to Huawei’s supply chain may have immediate, far-reaching and unexpected consequences, Reuters noted.

“It appears the intention is to limit unintended impacts on third parties who use Huawei equipment or systems,” Washington lawyer Kevin Wolf, a former Commerce Department official, was quoted as saying.

“It seems they’re trying to prevent network blackouts.”

Last Thursday, the US Commerce Department added Huawei and 68 entities to an export blacklist that makes it nearly impossible for the Chinese company to purchase goods made in the US.

Huawei is now on a list of entities that are banned from doing business with US companies without licenses that will be extremely difficult to obtain.

Reuters reported Friday that the department was considering the temporary move to allow time for companies and people who have Huawei equipment to maintain reliability of their communications networks and equipment.

Monday’s posting said the reprieve was created as a temporary general license, in effect until August 19, that allows Huawei to purchase goods to maintain existing networks and equipment and provide software updates to existing Huawei handsets.

The entities list identifies companies believed to be involved in activities contrary to the national security or foreign policy interests of the United States.

Reuters reported on Sunday that Google suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing.

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RC

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