U.S. administration issues temporary exception to Huawei ban

In a slight return that gives U.S. companies time to adjust, the Trump Administration today said it is issuing certain temporary exclusions to the ban on transactions with global telecom manufacturer Huawei.

Is that chance what SIA is hoping for when thay stated that they “remain hopeful a mutually beneficial agreement is still within reach“?

According to statement released by the U.S. Dept. of Commerce (DoC), the Bureau of Industry and Security (BIS) has announced a Temporary General License (TGL) amending the Export Administration Regulations (EAR) to authorize specific, limited engagement in transactions involving the export, reexport, and transfer of items – subject to the EAR – to Huawei Technologies Co. Ltd. and its 68 non-U.S. affiliates, which were added to the Bureau’s Entity List on May 16, 2019.

The TGL went into effect on May 20 and will expire in 90 days; the DoC has the option of extending beyond the initial three-month window.

“The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long-term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,” said Secretary of Commerce Wilbur Ross. “In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”

In essence, the Trump Administration action allows Huawei to use U.S. technology that it already has a license to for three months. New technology and mobile phone models requiring new licenses would still need to apply for them — and those licenses are unlikely to be approved, according to Reuters.

In an interview with Chinese state broadcaster CCTV, Huawei CEO Ren Zhengfei was defiant, calling the Commerce Department reprieve “not a very big deal.” He said “we have already made preparations, but we thank American companies very much.”

In light of growing tensions with Washington, Huawei stated recently that it stockpiled component supplies to protect against U.S. supply chain disruptions.