Huawei to receive another 90-day extension to its temporary trade license

US to extend relief to Huawei for 90 days

US Government to give Huawei another temporary reprieve

US Commerce Secretary Wilbur Ross announced on Monday that the US is giving Huawei another 90 days before it is properly blacklisted from doing business with American firms.

When the US Bureau of Industry and Security (BIS) put Huawei on its "entity list", thus prohibiting US companies and any others that want to stay in the US's good books from doing business with it, there were a number of stated reasons for doing so.

Ross said on Monday that the USA government will indeed extend the reprieve by 90 days, Reuters reports.

The Commerce Department initially allowed Huawei to purchase some American-made goods in May, shortly after blacklisting the company in a move aimed at minimising disruption for its customers, many of which operate networks in rural America.

"At this moment it looks much more like we're not going to do business (with Huawei)".

And Mr Ross said the extension would help USA customers.

In spite of the reprieve, the Commerce Department has added 46 more Huawei subsidiaries to the entity list.

The new deadline for implementing the ban is November 19, he said.

This comes as a relief for Huawei.

Huawei has become enmeshed in the trade war between Washington and Beijing, with President Donald Trump showing a willingness to use the sanctions as a bargaining chip. The president didn't clarify whether another 90-day extension would be granted to the company.

USA stocks climbed Monday after the Trump administration signaled progress on trade negotiations and Ross announced the extension.

Triolo said the one thing is sure in all the confusion generated by the White House: "Huawei is doubling down on finding alternative suppliers, and US companies going forward will be viewed as unreliable partners by greater numbers of Chinese firms". The Shenzhen-based telecommunications giant had 90 days to trade with U.S. partners and the reprieve is ending today. "And I really believe that the media have covered it a little differently", he added.

The semiconductor industry has lobbied to sell non-sensitive items that Huawei could easily buy overseas, arguing that a blanket ban harms US companies.

However, whether the US government's generosity towards Huawei will be limited to "90 days" or receives a further extension remains to be seen.

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