Trade dispute: US postpones sanctions against Huawei for another three months
US companies may do business with the Chinese group in the next 90 days. Some people are "dependent on Huawei," the Minister of Commerce explains.
The US government has postponed the planned sanctions against the Chinese company Huawei for another three months. This was announced by US Secretary of Commerce Wilbur Ross in conversation with the television network Fox Business Network. The expiring deadline for a "temporary general license" will be extended by 90 days, he said.
"Need more time to wean themselves"
"As we continue to push consumers to say goodbye to Huawei's products, we recognize that it takes more time to avoid any disruption," said Ross, explaining the US decision. "Some rural businesses are dependent on Huawei," said the minister. Immediate sanctions could potentially lead to defaults on smaller US mobile operators in rural areas using Huawei's broadcasting technology for their networks. The renewed deadline gives these companies "more time to retire," Ross said, calling November 19 a new deadline for the Huawei ban.
For users of Huawei smartphones, this means among other things: Google can continue to provide Huawei phones that run on the Google Android operating system, at least until mid-November, in full with updates. Also, Huawei can continue to pre-install Google's App Store Play Store and other Google services such as maps or web search.
In fact, a first three-month suspension of sanctions imposed by the US government in May would have expired this Monday. Earlier, the US had blacklisted Huawei and several affiliates of companies whose business dealings with US partners are subject to strict controls. Anyone who wants to sell or transfer US technology to Huawei needs a license. That can be denied, according to the US government, if security interests are affected.
With Harmony OS Huawei wants to avoid sanctions
Huawei is the second largest smartphone manufacturer in the world and also a leading supplier of mobile networks, including in Europe. The US government sees a security risk in the Chinese manufacturer's technology and accuses Huawei of sabotaging and espionage of the Chinese government. The Group has always rejected such allegations.
To counter the threat of sanctions, Huawei had recently introduced its alternative operating system Harmony OS. Harmony OS can replace the Android operating system at any time on smartphones from Huawei, the company said. However, it could be difficult to convince app developers and manufacturers to produce versions specially adapted for Harmony OS.