Last week, the US Department of Commerce prohibited Huawei from cooperating with US companies, and now it temporarily lifts the ban.
The Secretary of Commerce, Wilbur Ross, commented on the decision, saying:
“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. In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”
The company receives a delay of 90 days – during this period it is allowed to deal with American companies and purchase goods produced in the USA, but only to service existing products, such as network equipment, and also to provide software updates for their devices. This will not allow them to use US products to create something new.
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Yesterday it was reported that Google has banned Huawei access to the Play Store and other services because of this political decision. In addition, Huawei will not be able to purchase any goods in the United States without a license to create new products, including products from Intel, Broadcom, and others.
A delay of 90 days may be related to an understanding by the US government of the scale of the consequences of its actions. Such a policy will certainly damage Huawei. However, it is worth believing that American companies will suffer no less.
The ideal solution will be for the U.S. and China to work out a solution to the problem but if they can’t, the temporary reprieve will give Huawei, suppliers, and customers more time to prepare for the future.
