For the third time this year, the US Commerce Department has granted another 90-day reprieve to Huawei that lets American companies continue to do business with China's biggest telecom. The new rule takes effect on November 18th, and it follows the first extension granted in May and the second in August.
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Huawei is being given another 90-day reprieve by the U.S. government, following the Temporary General License (TGL) issued back in May. That provides the company with three more months to continue purchasing goods from U.S. companies. While this extension might sound like a step towards dropping the Entity List import/export ban for good, the government is clear that the extra few months are merely meant to "afford consumers across America the necessary time to transition away from Huawei equipment."
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The Department of Commerce has announced a 90-day reprieve to an import ban against Chinese manufacturer Huawei. The company now has a Temporary General License to engage with U.S. vendors on a limited basis — in this case, Google will be allowed to provide software updates to Huawei for its Android phones while Huawei's component suppliers will be able to finish deliveries for previously-made orders. It will also give telcos dependent on Huawei products time to potentially find alternative solutions.
Read MoreHuawei and its U.S.-based suppliers remain on eggshells as the Trump administration has yet to issue special permits allowing domestic companies to ship product to the Chinese tech manufacturer — this is going on as Huawei's temporary reprieve from an Commerce Department import ban is headed into its last week. Now, there's word from Bloomberg's sources that the White House is stalling on approving the permits.
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Beyond the political luggage generated in the midst of the protracted U.S.-China trade dispute, the American import ban that Huawei has to deal with is laden with doubt from tech critics who chide D.C. with inhibiting innovation in mobile phones. Lest we forget, though, that the Department of Justice is pursuing the Chinese tech behemoth for stealing trade secrets and fraud in relation to Iran sanctions breaches. Now, we're learning of leaked documents that tie Huawei to business conducted in another adversarial country: North Korea.
Read MoreWhen the US added Huawei to the Entity List last month, it sparked a series of troubles for the Chinese manufacturer that are beginning to have significant consequences on its shipments and revenue. Indeed, the company has been banned from doing business with US organizations, which means it had to stop its working relationships with chip manufacturers and even Google.
Although Huawei tried to reassure markets with mitigation measures, including an in-house OS; these didn't seem to convince buyers its devices were a safe bet. Indeed, British carriers paused the introduction of the manufacturer's 5G products and its partner Foxconn was said to be halting some Huawei production lines earlier this month.
Read MoreIt's no secret Huawei has been going through some serious issues after it's been added to the US Entity List, preventing it from doing business with US companies. Indeed, most of the manufacturer's American partners were fast in cutting their ties with it, ranging from Google to chip manufacturers. ARM's decision to do the same also prevented the Chinese firm from continuing to build its Kirin chips, which were featured in most of its devices. Although Huawei is trying to overcome these woes with in-house software and working with Aptoide to put in place a Play Store replacement, it's struggling to convince the world about its viability.
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Just a few days after the US added Huawei to its "Entity List," things are continuing to go south for the Chinese manufacturer. The demise began with Google announcing it would put an end to its partnership with the company, and continued with major chip manufacturers blacklisting it. Although Huawei is trying to mitigate the first issue by working on an in-house operating system, hardware related bans are much more complex to overcome. To make things worse, ARM has just asked its employees to stop working with the Chinese tech giant, which puts the company's Kirin chips at risk.
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It has been a weird couple of months for ZTE since the US Commerce Department imposed a complete trade ban on ZTE that cut it off from its US suppliers. ZTE was forced to shut down while it worked on a solution with the government, and now it's back in action. The Commerce Department has confirmed that ZTE followed through with the new settlement requirements, so the trade ban is no more.
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After the U.S. Department of Commerce banned ZTE from importing US-made components, due to the company violating an agreement it made in 2017, ZTE shut down most operations while it fought to lift the ban. The Commerce Department told ZTE it had to pay over a billion dollars in fines and replace its entire senior leadership for the ban to be lifted, which ZTE agreed to last month.
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