Huawei gets 90-day relief from US restrictions

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Huawei gets 90-day relief from US restrictions

Washington - US grants a temporary license that will allow Huawei to continue doing business with American firms.

By AFP

Published: Tue 21 May 2019, 6:30 AM

Last updated: Tue 21 May 2019, 1:02 PM

US officials have issued a 90-day reprieve on their ban on dealing with Chinese tech giant Huawei, saying breathing space was needed to avoid huge disruption.
A Commerce Department filing said the delay does not change the ban imposed by President Donald Trump on national security grounds, an action with major implications for US and Chinese technology firms.
Instead, it grants a temporary license that will allow Huawei to continue doing business with American firms.
"The Temporary General License grants operators time to make other arrangements and (gives) 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 license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks."

#NEWS Department of Commerce Issues Limited Exemptions on Huawei Products https://t.co/NL9qnQZge7 pic.twitter.com/WFdwhPO7j9
- U.S. Commerce Dept. (@CommerceGov) May 20, 2019

The Huawei confrontation has been building for years, as the world's largest company has raced to a huge advantage over rivals in next-generation 5G mobile technology.

US intelligence believes Huawei is backed by the Chinese military and that its equipment could provide Beijing's spooks with a backdoor into the communications networks of rival countries.

For that reason, Washington has pushed its closest allies to reject Huawei technology, a significant challenge given the few alternatives for 5G.

Last week, President Donald Trump declared a "national emergency" empowering him to blacklist companies seen as "an unacceptable risk to the national security of the United States" - a move analysts said was clearly aimed at Huawei.

At the same time, the US Commerce Department announced the effective ban on US companies selling or transferring US technology to Huawei.

It is the implementation of this ban that was delayed on Monday by 90 days.

But the Huawei fight is over more than just US national security. Washington sees Huawei's rise as emblematic of China's drive to wrest global technological and economic leadership from the United States.
Here is the US Commerce Department's full statement for Huawei to continue doing business with American firms:

Today, the Bureau of Industry and Security (BIS) of the US Department of Commerce announced that it would issue a Temporary General License (TGL) amending the Export Administration Regulations (EAR) to authorize 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-U.S. affiliates, which were added to the Bureau's Entity List on May 16, 2019. This license will be effective on May 20, 2019 and lasts 90 days.

"The Temporary General License 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 license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks."

The Temporary General License authorizes certain activities necessary to the continued operations of existing networks and to support existing mobile services, including cybersecurity research critical to maintaining the integrity and reliability of existing and fully operational networks and equipment. Exporters will be required to maintain certifications, to be made available when requested by BIS, regarding their use of the TGL. With the exception of the transactions explicitly authorized by the TGL, any exports, reexports, or in country transfers of items subject to the EAR will continue to require a special license granted after a review by BIS under a presumption of denial. The Department will evaluate whether to extend the TGL beyond 90 days.

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 (WMD) projects, terrorism, or destabilizing military modernization programs.