American companies can continue to do business longer with the Chinese telecom manufacturer Huawei. The company is formally blacklisted, but the United States Department of the Economy extended the license again by 90 days on Friday.
The temporary license allows for certain transactions between Huawei and US telecom providers. In addition to being a smartphone maker, Huawei is the global market leader when it comes to telecom network equipment.
The license has been renewed several times. The Ministry of Economic Affairs now warns that this is probably the last time the license will be renewed.
Huawei was blacklisted last year. According to the US, the country uses telecom equipment from its own country to spy on the West. But this has never been demonstrated by the US. Huawei and Beijing deny doing espionage.
On Wednesday, it was announced that American telecom companies will not be allowed to use equipment from the Chinese telecom manufacturers Huawei and ZTE in the coming year. President Donald Trump extended the state of emergency in the telecom sector by one year.
US wants to separate Huawei from global suppliers
In addition, the Ministry of Economic Affairs announced on Friday plans to separate Huawei from foreign companies that use American technology for semiconductor development.
According to the ministry, despite the trade ban, Huawei has continued to use American software and technology for semiconductor development. Huawei needs semiconductors for the production of smartphones.
Foreign companies using US equipment for semiconductor manufacturing must obtain a US license before being allowed to supply it to Huawei.
China threatens restrictions on Apple
According to The Global Times, China threatens to take action if Washington halts semiconductor supply. In that case, Beijing would blacklist American companies.
The Global Times sources speak of new investigations and imposing restrictions on companies such as Apple, Cisco Systems and Qualcomm. Orders with Boeing would also be suspended.