Red card overturned - 90 day repreive for Huawei

News by Doug Olenick

The US Commerce Department has temporarily relieved China's Huawei of its inclusion on the US federal Entity List, allowing the company to continue to operate with its business partners for 90 days.

The US Commerce Department has temporarily relieved Chinese manufacturer Huawei of its inclusion on the US federal Entity List, allowing the company to continue to operate with its business partners for 90 days.

Huawei was added to the Entity List on 16 May, effectively banning the company from doing business in the United States, but Commerce’s Bureau of Industry and Security gave the company some breathing room on 20 May 20 with the "issue of a Temporary General Licence amending the Export Administration Regulations to authorise specific, limited engagement in transactions involving the export, reexport, and transfer of items – subject to the EAR – to Huawei Technologies Co Ltd and its sixty-eight non-US affiliates," the Commerce Department wrote.

"The Temporary General Licence grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services," said Secretary of Commerce Wilbur Ross. "In short, this licence will allow operations to continue for existing Huawei mobile phone users and rural broadband networks."

Huawei was added to the Entity’s List after the US federal government determined the company engaged in activities detrimental to US national security and foreign policy interests. In reaction and to remain within the law Google, Intel and Qualcomm all announced they would be severing ties with Huawei.

In a separate development the BBC reports that UK chip manufacturer ARM has instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei and its subsidiaries to comply with the US trade blacklist.

This article was originally published on SC Media US.

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