Washington DC, May 21: The United States has announced on Monday temporary ease of sanctions to US firms using products of Chinese tech giant Huawei, that has been deemed as a threat to nation’s security by Washington.
According to ANI news reports, the US commerce department has made the current announcement in order to assist American firms to do businesses with China’s Huawei.
US President Donald Trump has last Wednesday inked an executive order which barred American companies from using any telecommunication equipment from Huawei which the Trump administration had deemed as a national security threat.
The US took the decision in the midst of a trade war between China and the United States. Earlier, the White House officials have refused to identify Huawei and China as the intended target of the executive order.
Shortly after the release of the order, however, the Us department formally added Huawei to a list of firms which the American government considers it to be undermining the US interests. By putting Huawei onto the so-called Entity List, the US administration ensured Huawei will remain under the new executive order.
The US department has issued a temporary general license which is effective for 90 days that allows Huawei to buy the US goods in order to maintain existing networks and hence, continue to provide wireless connectivity and services. Huawei is still banned from buying American products to make its own new product.
In an official statement, secretary of commerce Wilbur Ross said, “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 to make new products.”
Meanwhile, Ren Zhengfei, Huawei’s founder, last day said the US temporary license has not made much sense and reiterated that Huawei war already prepared to respond to its supply chain disruptions.