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US scales back few restrictions on Huawei

US scales back few restrictions on Huawei

Mubasher: The US administration decided to relax some trade restrictions imposed last week on Huawei, in a bid to reduce disruption for the Chinese company’s customers worldwide, CNBC reported.

The Commerce Department on Monday announced that it will allow the telecoms giant to source US-made goods in order to maintain existing networks and provide software updates to existing Huawei’s smartphones.

That said, Huawei is still blocked from purchasing US components to build new products, while the smartphone maker will probably be denied licence approvals.

The authorisation, effective for 90 days, aims to provide telecoms providers which rely on Huawei’s equipment and hardware time to make other arrangements, a statement by US Commerce Secretary Wilbur Ross was cited by CNBC.

Last week, US President Donald Trump declared a national emergency over threats against US technology, authorising Commerce Department to ban any transactions that include any communication technology that poses “an unacceptable risk to the national security.”

While not naming Huawei directly, the policy came against the backdrop of Washington’s push to governments around the world to exclude the firm’s fifth-generation network technology.

Moreover, Huawei and its affiliates were included to the Bureau of Industry and Security (BIS) Entity List, making it harder for the company to conduct business with US firms.

Following the decision, Google suspended business with Huawei which requires the transfer of hardware, software and services except for those publicly available.

However, the Wall Street Journal (WSJ), citing sources, reported that Google would be halting its plans to reduce Huawei’s access.