The United States can give Huawei another 90 days
Move allows Chinese company to roll out phone updates
Huawei company logo is depicted at Shenzhen International Airport in Shenzhen, Guangdong Province, July 22 (Reuters photo)
SINGAPORE / WASHINGTON: The U.S. Commerce Department is expected to extend a deferral given to Huawei Technologies that will allow the Chinese company to buy supplies from U.S. companies so it can serve existing customers, two sources familiar with the situation said.
The "temporary general license" will be extended to Huawei for 90 days, the sources said.
Trading initially allowed Huawei to buy some US-made goods in May shortly after blacklisting the company in a move that would minimize disruption to its customers, many of whom operate networks in rural America.
An expansion will renew an agreement due to expire on August 19, continuing the Chinese company's ability to maintain existing telecommunications networks and provide software updates for Huawei handsets.
The situation around the license, which has become a major bargaining chip for the United States in its trade talks with China, remains fluid, and the decision to continue Huawei deferral may change before the deadline on Monday, the sources said.
US President Donald Trump and Chinese President Xi Jinping are expected to discuss Huawei in a call this weekend, one of the sources said.
Huawei did not have an immediate comment. China's foreign ministry did not immediately respond to a fax comment.
When the Commerce Department blocked Huawei from buying U.S. goods earlier this year, it was seen as a major escalation in the trade war between the world's top two economies.
The US government black Huawei on black, claiming the Chinese company is involved in activities that run counter to national security or foreign policy interests.
As an example, the blacklisting order cited a criminal case pending against the company in federal court over allegations Huawei violated U.S. sanctions on Iran. Huawei has pleaded guilty to the case.
The executive order noted that the indictment also accused Huawei of "misleading and obstructive actions."
At the same time, the United States says Huawei & # 39; s smartphones and networking equipment could be used by China to spy on Americans, accusations the company has repeatedly denied.
The world's largest telecommunications equipment manufacturer is still prohibited from purchasing US parts and components to manufacture new products without additional special licenses.
Many Huawei vendors have requested the special licenses to sell to the company. Commerce Secretary Wilbur Ross told reporters late last month that he had received more than 50 applications and that he expected to receive more.
Out of the $ 70 billion that Huawei spent to buy components in 2018, about $ 11 billion for US companies, including Qualcomm, Intel and Micron Technology.
The Commerce Department declined to comment late on Friday, citing Mr. Ross comments on CNBC television earlier this week, stating that the existing licenses were in effect until Monday.
When asked if they would be extended, he said, "Monday I will be happy to update you."