Huawei Received Another 90-Day Extension to Its Trade License


Huawei has been operating on borrowed time ever since the Department of Commerce issued a directive asking all US-based companies to suspend ties with them. A temporary extension was granted shortly after that allowed Huawei to conduct business with some companies. The license was set to lapse on August 19. The U.S. Commerce Department will extend that license by another 90 days, according to a report by Reuters.

One of the primary reason for this extension is that a lot of rural areas in the United States rely on Huawei networking equipment. US Commerce Secretary Wilbur Ross says that a part of the reason for the extension was to allow the companies that still use said equipment 'to ween off them', though it would take a lot longer than 90 days for that to happen.

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Ross added that an additional 46 subsidiaries of Huawei are being added to the ban list today, making it harder for the company to continue business in the US. The ban has resulted in a lot of undesirable consequences for Huawei as they lose access to critical technologies that make their smartphones (and other electronics) tick.

It is reported that more than 50 companies applied special licenses to distribute parts to Huawei in the past three months. The Commerce Department has yet to grant a license for any American company to continue business with Huawei. The US will begin issuing those licenses once the company is deemed as not a threat to US national security.

One of the primary concerns a lot of Huawei/Honor smartphone owners had after the directive was about the future of their devices. Thankfully, the ban hasn't stopped Huawei from rolling out timely software updates for their existing devices. The company had talked at length about Android Q-based EMUI 10 earlier this month and even listed the devices that would receive it.