BEIJING (dpa-AFX) - The U.S. government has issued a new 90-day license extension that will allow U.S. companies to continue doing business with Chinese telecom giant Huawei Technologies Co. Ltd.
This is the third 90-day license extension given by the U.S. to Huawei, the world's largest telecom equipment maker. The extension was given in order to minimize disruption for Huawei's customers, who will continue to receive support for their existing devices.
The U.S. Department of Commerce said Monday it will extend for 90 days the Temporary General License or TGL that will allow American companies to sell their products to Huawei that do not pose national security concerns.
'The Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark. The Department will continue to rigorously monitor sensitive technology exports to ensure that our innovations are not harnessed by those who would threaten our national security,' said Secretary of Commerce Wilbur Ross.
The license extension comes ahead of the U.S. Federal Communications Commission's plan to vote on a proposal later in November to designate Huawei and another Chinese company, ZTE Corp., as national security risks.
Huawei and ZTE are major players in the 5G market as they manufacture and sell telecom equipment for 5G networks at competitive prices.
The U.S. has serious concerns about the security risks posed by Chinese technology companies, including Huawei and ZTE. Intelligence agencies are concerned that Huawei and other Chinese companies may be beholden to the Chinese government or the ruling Communist Party, raising the risk of espionage.
The Trump administration blacklisted Huawei in early May on national security grounds, with the ban primarily aimed at keeping equipment made by the Chinese company out of the 5G network in the U.S.
In May, the U.S. Commerce Department added Huawei to its 'Entity List,' which banned the Chinese company from buying components and technology from American firms without prior approval from the U.S. government.
In the same month, the Commerce Department temporarily eased some restrictions imposed on Huawei in order to minimize disruption for the Chinese company's customers. The temporary reprieve was in effect for 90 days and was again extended for another 90 days in August.
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