The United States extends its trade license with Huawei

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This is another time.

Donald Trump's administration is about to spend another permission to trade American companies with Chinese Huawei. This is not the first time after the manufacturer has been blacklisted in May this year, when officials decide to extend the license to trade with Huawei. This time, however, the number of days will be much shorter. Previously, the administration of the US president extended the "no ban" period by 90 days. The latest information indicates that this time the Chinese will receive two extra weeks to settle your business.

Interestingly, US officials are expected to prepare an even longer extension of the trade license behind the scenes – for now, however, it has been suspended due to regulatory obstacles. Why do Americans agree to all this despite the situation? The case concerns customers who provide internet to smaller towns in the United States. Completely cutting off trading opportunities with the Chinese people would translate into huge disturbances and problems arise – not only financial.


Secretary of Commerce Wilbur Ross said in an interview with Fox Business Network that smaller network providers are completely addicted to Huawei infrastructure for 3G and 4G connections. The new trade licenses are to help smaller businesses find a different solution. After all, the United States is still discussing with China in the context of the flow of products between the powers – the whole situation has been going on for over a year and does not seem to end too soon.

In mid-October 2019, the US Department of Commerce was to issue a document that would clearly define the rules of conduct in the context of Huawei's blacklisting. This type of data has not yet been published, and the whole situation is fluid and developmental.

A two-week license extension can be expected will not be the last decision of this type.

Source: reuters