Thu. Nov 14th, 2019

US Department of Commerce will allow Huawei to purchase US technology products on the next 90 days

2 min read

The transition period of the ban imposed by the US Department of Commerce on Huawei has ended. Finally, the US Department of Commerce decided to continue to extend the ban. This means that Huawei Technologies Co., Ltd. can still continue to purchase products from US technology companies, of course, these products may need to be reviewed. As for the extension of the ban, the most important thing is that it will have a serious impact on American companies, and even if Trump does not want to, this ban will eventually be extended.

Huawei ban
“” by f999999_key is licensed under CC CC0 1.0

The CNBC said that if the US Department of Commerce strictly enforces Huawei’s regulatory ban, it will have a serious impact on some of Huawei’s supply chain. At the same time, this will also have a serious impact on American technology companies that supply Huawei. The damage is mutual, so even if the ban is easy to implement, the US Department of Commerce cannot make a decision easily, which will hit US companies and cause more unemployment. This is also the main reason why the US Department of Commerce still decided to continue to extend the control ban on Huawei, although Trump said it is unwilling to continue doing business with Huawei.

Earlier, Trump also said that the United States will not do business with Huawei for the time being, but actually, this means that the US government departments will not purchase Huawei products. Huawei purchases up to $11 billion in parts and materials from US technology companies every year, and the sudden ban has plagued US technology companies. It is also the case that many US technology companies have lobbied the US government to request a ban or apply for a special license so that they can continue to supply to Huawei.

Via: CNBC