BEIJING (dpa-AFX) - Huawei Technologies Co. has been granted a temporary license that will allow the Chinese tech giant to continue doing business with some American firms for three months.
President Donald Trump's administration had previously banned U.S. companies from doing business with Huawei on national security grounds,
The move to grant a temporary license will help support existing Huawei networks and devices.
Commerce Secretary Wilbur Ross said the Temporary General License grants operators time to make other arrangements and gives the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.
'In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks,' Ross said in a statement.
The U.S. Commerce Department last week blacklisted Huawei and its affiliates, banning the Chinese company from buying components and technology from U.S. firms without a license from the U.S. government.
The decision would also make it difficult for Huawei to sell products for which it relied on parts from U.S. suppliers.
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced that it would issue a Temporary General License (TGL) amending the Export Administration Regulations (EAR) to authorize specific, limited engagement in transactions involving the export, reexport, and transfer of items to Huawei Technologies Co. Ltd. and its sixty-eight non-U.S. affiliates, which were added to the Bureau's Entity List on May 16.
This license will be effective for 90 days from May 20.
The Commerce Department said in a press release that it will evaluate whether to extend the temporary license after 90 days.
Huawei was added to the Entity List after the Department concluded that the company is engaged in activities that are contrary to U.S. national security or foreign policy interests.
Meanwhile, Huawei founder Ren Zhengfei told Chinese state media that the United States 'underestimates' the tech giant's strength.
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