Recently, the Commerce Secretary of the United States, Wilbur Ross said that the US has allowed its companies to sustain their business with the Chinese telecommunications giant – Huawei, for an additional 90 days.
This move is intended to give the rural telecommunications companies in the US more time to sway away from Huawei. Huawei supplies parts and equipment to many of those rural telecommunications.
Rural telecom companies are finding it difficult to substitute Huawei equipment since the company got banned in the communication networks of the US. Wilbur Ross said, “As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption.”
Since the trade talks broke down in May, Huawei got plunged in between the US trade war with China. The US government has also banned the telecom giant from buying American technology without the prior approval of the government.
After the ban, several US companies found it difficult to comply with such a short notice notification. After several companies complained about the ban, Donald Trump recently hinted for some relief to Huawei in exchange for China’s purchasing more American farm products. It yielded no agreement until now.
With no signs of easing pressures on Huawei, the Commerce Department announced that it would add 46 Huawei affiliates to the entity list. Huawei announced the action as ‘politically motivated’ and not related to national security. The company called that it was being treated ‘unjust’.
Huawei, in a statement, said that “These actions violate the basic principles of free-market competition.” and “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership.”
Trump had called the firm as a threat to national security. The US government is concerned about Huawei helping the Chinese government in its espionage attempts and could try to disrupt the telecom infra of the US in times of conflict.
On the other hand, Trump stated that he and President Xi of China were planning to speak. The two countries reportedly will continue to have trade talks according to the sources.
The Republicans and the Democrats are continuously urging Trump not to allow Huawei to business on the US land anymore. The Us government has warned its allies that it will stop sharing intelligence if they allow Huawei to build the core of the fifth-gen (5G) networks.