The US government on Monday relaxed some trade restrictions imposed last week on Huawei, a move aimed at reducing the problems that may face telecom customers around the world.
The US Department of Commerce will allow Huawei to buy US-made goods to maintain existing networks and provide software updates to existing Huawei phones. However, the company is still prohibited from buying spare parts, and American components, to manufacture new products, without obtaining license approvals, which are likely to be rejected.
US Commerce Secretary Wilbur Ross said in a statement: "The purpose of the new mandate is to give telecom providers who rely on Huawei equipment some time to make other arrangements.
The license, which applies for only 90 days, indicates that changes in the supply chain from Huawei may have immediate, long-term, unintended consequences for its customers.
It is believed that the purpose of this mitigation is to prevent the disruption of Internet and computer systems. The Ministry of Commerce said it would assess the possibility of extending exemptions for more than 90 days.
Last Thursday, the US Commerce Department added Huawei and 68 entities to a black export list, making it almost impossible for the Chinese company to buy goods made in the United States. Listed companies are involved in activities that conflict with national security interests or US foreign policy.
The license, announced by the US Department of Commerce, also scans for security vulnerabilities, and allows Huawei to participate in the development of future generation 5 network standards.
Bloomberg said Monday that US chip makers Intel, Qualcomm and Broadcom have suspended their dealings with Huawei. Of the US $ 70 billion in 2018, 11 billion were from these three companies.
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