The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has granted an extension for US companies to do business with blacklisted Chinese telecoms group Huawei as regulators continue to hammer out rules on companies that pose national security risks and negotiators strive for progress in trade talks.
The Commerce Department announced on Monday they issued a new 90-day extension allowing US companies “specific, limited engagements” with Huawei and its non-US affiliates.
The Trump administration in May put the Chinese company on an economic blacklist, citing worries the group poses a national security risk. This barred it from buying inputs crucial to the manufacture of its telecommunications equipment, including purchasing semiconductors from US companies, such as Qualcomm, and from using Google’s Android operating system in its smartphones.
Huawei’s addition to the so-called entity list means American companies needed to obtain a licence from the US government to sell technology to the Chinese group. Today’s announcement is the latest in a series of 90-day extensions the Commerce Department has issued since May allowing Huawei to purchase some US-made goods in order to minimise disruption for its customers.
“The Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark,” said Secretary of Commerce Wilbur Ross.
“The Department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security.”
Outside of the scope of the TGL, any exports, reexports, or in-country transfers of items subject to the EAR will continue to require a license, if granted, after a review by BIS under a presumption of denial.
Huawei was added to the Entity List after the Department concluded that the company is engaged in activities that are contrary to U.S. national security or foreign policy interests, including alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of U.S. sanctions, among other illicit activities.
The Bureau of Industry and Security’s mission is to advance U.S. national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. BIS is committed to preventing U.S.-origin items from supporting Weapons of Mass Destruction projects, terrorism, or destabilising military modernisation programs.