In Trump’s Business Style: Another 90-day Reprieve For Huawei

In Trump’s Business Style: Another 90-day Reprieve For Huawei

The US expands blacklist but gives Huawei another 90-day reprieve. The US Commerce Department said Monday it is adding more than 45 new businesses associated with Huawei, the embattled Chinese technology giant, to an export blacklist, CNN reported.

“There is a great chance that Trump is only playing kind of business game with Huawei just to slow the immense Chinese economic growth but it is still extremely risky for the US to ban Huawei products as a final decision. However 5G network seems still dangerous to be allowed any time soon by the US”, analyses.

At the same time, Commerce said it was renewing a temporary general license that permits companies in the United States to sell products to Huawei on a limited basis, such as to provide security updates to Huawei devices. The renewal lasts for 90 days and went into effect on Monday, according to CNN.

The United States has long argued that Huawei poses a national security threat, and has claimed Beijing can use the company’s products to spy on other nations. That claim has driven the US government to urge its allies to restrict or ban the use of Huawei equipment in their 5G networks.

Huawei is a fulcrum in Trump’s wider trade war with China. On Sunday, Trump tweeted that the United States is “doing very well with China, and talking!” after economic adviser, Larry Kudlow appeared to indicate progress toward a deal, CNN wrote.

Meanwhile, on Fox Business on Monday, Commerce Secretary Wilbur Ross claimed that Chinese vendors have borne “all or part of the hit” from Trump’s tariffs on Chinese-made goods.

In a statement announcing the entity list move, Ross said the extension of the temporary general license reflects that “more time is necessary to prevent any disruption.”

Although the extension is a good thing for Huawei’s business, the company continues to vehemently oppose its inclusion on the blacklist. The US government has now expanded the ban to include Huawei and 118 of its affiliated businesses.

“It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security,” Huawei said in a statement. “These actions violate the basic principles of free-market competition. They are in no one’s interests, including US companies. … The extension of the Temporary General License does not change the fact that Huawei has been treated unjustly.”

Tamara Kuzmanovic

Writer and journalist for Swiss, Serbian and Singapore media. I worked for the Japanese news agency too. A former United Nations (Geneva) accredited correspondent for 6 years. Based in the Serbian capital Belgrade I've also lived in Switzerland for 12 years. I graduated from College for marketing communication with a degree in advertising, English and public relations. My father was a Serbian MP and Belgrade University professor

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