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U.S. Extends Huawei Reprieve for 90 Days but Blacklists More Subsidiaries

By Han Wei and Zhang Qi / Aug 20, 2019 03:12 AM / Business & Tech

Photo: VCG

Photo: VCG

The U.S. Commerce Department will grant another 90-day temporary reprieve to Huawei Technologies, delaying the implementation of a business ban on the Chinese telecom giant.

Commerce Secretary Wilbur Ross confirmed the extension of the delay on Huawei sanctions early Monday to provide "more time" for American consumers and businesses to "transition away from Huawei's products."

The new deadline will be Nov. 19, the Commerce Department said in the statement.

“Some of the rural companies are dependent on Huawei,” Ross said. “So we’re giving them a little more time to wean themselves off. But no specific licenses are being granted for anything.”

At the same time, the Commerce Department said it added 46 more Huawei subsidiaries to the Entity List, meaning American companies are restricted from doing business with them without government approval. The department didn’t name the companies.

The Trump administration blacklisted Huawei in May, citing national security concerns. On May 20, the department granted a 90-day reprieve for Huawei and 68 subsidiaries. It was to expire Monday.

In a statement late Monday, Huawei said it opposes the addition of 46 subsidiaries to the Entity List. The extended reprieve didn’t change the fact that Huawei was “unfairly treated,” the company said. The U.S. action against Huawei is driven by political factors and violates fair market rules, Huawei said, calling on the U.S. government to remove it from the list.

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