The United States President Donald Trump has extended the ban on network equipment from Chinese manufacturers for one year. The ban was introduced a year ago and targeted tech giants such as Huawei and ZTE.
With the extension, it will not be possible for companies like Huawei to supply material to American companies until at least May 2021. The tech giant is considered unsafe. Huawei is accused by the US of spying for the Chinese government, something which the manufacturer itself has always denied and for which no concrete evidence has been presented.
Despite the extended ban, it is sometimes possible for several American companies to do business with Huawei, especially when it comes to rolling out a 5G network. Although the U.S. government tried to get other manufacturers to supply more material, certain aspects of network material have in the past been taken on by Huawei. Utilizing temporary licenses, certain companies have been given permission to do business with Huawei.
The granting of such licences was, like the ban on Huawei producers, a temporary measure that took effect in May 2019. The initial duration of this measure expires next Friday, but Reuters expects this measure to be extended as well. Considering the U.S. government investigated the effect of no longer issuing licences: the costs would be considerable and trade organisation CTIA believed that ‘this was not a good time to make things more difficult for international parties’.