US delays Huawei ban for 90 days

Industry:

Earlier this week, news broke out that Google had pulled Huawei's Android license as part of the US crackdown on Chinese companies. Following Google's actions, other US-based companies like Qualcomm also announced they would cut ties with China's Huawei. This has come as a major setback for the company that is currently the second biggest smartphone brand in the world. However, in order to minimize the disruption that this restriction is bound to cause, the US government has decided to delay the ban for 90 days.


According to a report by Reuters, the US government will allow Huawei to purchase American-made goods for a period of 90 days to maintain existing networks and help Huawei offer software updates to existing Huawei and Honor handsets. That being said, Huawei will still be prohibited from buying American parts and components to manufacture new products without license approvals.


This temporary license will be in effect until August 19 and it aims to provide telecom operators that rely on Huawei's equipment to make new arrangements, US Secretary of Commerce Wilbur Ross said in a statement. "In short, this license will allow operations to remain for existing Huawei mobile phone users and rural broadband networks," Ross said.


While this might sound like a major relief for Huawei, the company's founder Ren Zhengfei on Tuesday said that the temporary license means little as the company has already made preparations for such a scenario.


Huawei has been expecting a response like this from the US government for some time now and the company already has contingencies in place. Huawei has already stated in the past that it has built its own OS for exactly this scenario. The US Commerce Department, meanwhile, said that it will evaluate whether the exemption should be extended beyond 90 days or not.


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