US Government Extends Trade Prohibition with Huawei until 2021

Huawei Booth at MWC 2019

The US government issued an executive order containing a trade ban on Huawei in May last year because the Chinese giant was seen as a “threat to national security”.

Huawei Booth at MWC 2019

US telecommunications companies may not use certain network equipment made by Huawei. Besides Huawei, a similar ban also applies to ZTE, which is also a company from China.

This week, US President Donald Trump signed an extension of the ban for the next year, until May 2021. Shortly after the executive order was signed in May last year, the United States Department of Commerce put the name of Huawei and its 70 affiliated companies on the “Entity List” blacklist.

Huawei also could not use Google applications and services on its cellphone. The US government claims that telecommunications equipment made by Huawei carries a risk to national security because it can be used to spy on the Chinese Government.

Huawei has repeatedly denied this accusation. Meanwhile, as compiled from Reuters on Thursday (05/14/2020), the US Department of Commerce will reportedly renew provisional licenses that allow US companies to do business with Huawei.

The temporary license, which expires on Friday, is intended to reduce the impact of trade bans on US companies using Huawei products. In addition to the second largest smartphone manufacturer in the world, Huawei is also a telecommunications giant that provides 5G network devices.

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