This archive report was first published on 20 August 2019.
On August 19, 2019, the US government granted Huawei a 90-day reprieve, allowing the Chinese tech giant to continue working with US customers.
The extension, which was announced on August 19, 2019, gives local communication companies enough time to switch from Huawei's products and maintain existing equipment.
According to reports, the Trump administration banned Huawei due to its 'involvement in activities determined to be contrary to national security.' The ban initially prohibited the company's products for government use, before being expanded to bar transactions between American companies and Huawei unless approved by the US government.
The ban had significant consequences for both Huawei and its customers, limiting access to Google's OS and Intel processors, and imposing high switching costs of up to $1.2 million on local companies.
The Huawei reprieve may ease tensions between China and the US, and indicates some progress in the US-China trade negotiations.
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