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WASHINGTON – The United States will allow US companies to continue to do business with Chinese telecommunications giant Huawei for another 90 days, Secretary of Commerce Wilbur Ross said Monday.
The government's stay is intended to give US rural telecommunications companies more time to wean themselves from Huawei, which supplies parts and equipment to many of these suppliers. The rural telecom companies of the United States are struggling to find out how to replace Huawei equipment since the Trump administration banned the company from US communications networks in May and lobbied the White House for longer.
"While we continue to urge consumers to abandon Huawei's products, we recognize that it takes longer to avoid any disruption," Ross said in a statement.
Huawei was plunged in the middle of the war between President Trump and China and the President gave contradictory signals about the fate of the telecommunications giant. After the trade talks broke down in May, Trump's trade department added the company to a US "list of entities" that banned the company from buying US technology and other products without the company's approval. Government approval.
Trump also described the company as a threat to national security. The United States is concerned that Huawei may pose a threat to national security by assisting the Chinese government's spying efforts and disrupting US telecommunications infrastructure in the event of a conflict.
But after adding Huawei to the list of entities in May, the Commerce Department promptly offered a reprieve to US companies that were doing business with it until August 19. Mr Trump had hinted that he could yield more to Huawei in exchange for China's purchase of more US agricultural products. , but no such agreement has been concluded.
Speaking to reporters Sunday, Mr. Trump suggested that there might not be any further extension.
"Huawei is a company we can not deal with at all," he said.
Temporary relief for Huawei comes as trade talks between the United States and China remain stalled.
Trump agreed last week to postpone additional tariffs on toys and electronics in December, but the United States should still levy taxes on more Chinese imports on Sept. 1. . At the beginning of this month, he has called China currency manipulator for the first time since 1994. China should disclose its intention to take retaliatory measures.
Despite escalating tension, Trump said Chinese President Xi Jinping was planning to talk and the two countries would continue their trade talks.
Republicans and Democrats in Congress urged Trump to keep his hard line on Huawei. The total lifting of the ban would probably cause strong disapproval of both parties.
Speaking on the Fox Business Network on Monday, Ross said the administration would propose another extension until mid-November.
In a sign that the administration does not ease the pressure on Huawei, the Commerce Department said that it also added 46 Huawei subsidiaries to the list of entities.
The Trump administration warned that Huawei was a threat to national security and that US officials have been warning their allies for months that the US would stop sharing their information if they were using Huawei and D & # 39; other Chinese technologies to build the core of their fifth generation, the 5G. networks.
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