“90 days delay for trading U.S. companies with Huawei.

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Reuters reports from sources that the U.S. Commerce Department is likely to grant Huawei a postponement for doing business with U.S. companies. The plan is intended as a sign of good faith, says Larry Kudlow, director of the American National Economic Council.

Larry Kudlow reported that the Chinese company will receive an extra three months to extend its activities with existing customers. At the moment, broader negotiations are under way between the US and China, which are currently in a trade war.

Reuters reports that $11 billion of components for the Chinese company’s products came from U.S. suppliers. More than 50 American suppliers have already applied for a postponement. The American Commerce Secretary Wilbur Ross expects to receive even more applications in the near future.

Explanation Trump

However, US President Trump reported last Sunday that he prefers not to do business with the Chinese company Huawei. This is despite the fact that it has already been announced that the US Trade Commission is granting a postponement for trade with US companies. In the light of these plans, it is unclear what Trump’s precise intention is with regard to the Chinese technology giant.

On Sunday, Trump told reporters for Air Force One in New Jersey that he did not want to do business with Huawei to protect national security. “Right now, it’s a lot more like we’re not going to do business,” Trump said. I do not want to do business because this is a national security threat and I believe that the media have misinterpreted it.

He went on to say that while certain parts of Huaweis’ activities could be exempted from a broad trade ban, this would be ‘very complex’. He did not explain whether the ‘temporary general temporary licence’ as described above will be extended.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.