This archive report was first published on 19 August 2019.
As the trade war between the US and China continues, the US Commerce Department has extended a 90-day reprieve for Huawei, allowing the Chinese firm to buy supplies from US companies and service existing customers.
The reprieve, which was set to expire on August 19, 2019, was first granted in May 2019 and has been extended several times since then. The decision was made in an effort to show 'good faith' amid broader trade negotiations with China.
According to Reuters, the US Commerce Department was set to issue another 90-day grace period to Huawei Technologies Co Ltd, permitting the Chinese firm to buy supplies from US companies so that it can service existing customers. This agreement will reportedly let Huawei maintain current telecom networks and supply software updates for phones.
However, US President Donald Trump cast doubt on any reprieve for US companies selling to Huawei, saying he does 'not want to do business at all' with the Chinese telecoms company. This appears to contradict the commerce department official over whether the trade extension will be granted.
Despite the uncertainty, an extension of the reprieve on Huawei would be a victory for the business community, which has pushed hard for more flexibility with regards to the Chinese company. This reprieve could make or break Huawei's grip on the US market.
