Huawei Ban in U.S. Extended to May 2021
June 10, 2020
As we’ve reported previously, the U.S. has imposed sanctions against Huawei and other Chinese technology companies, citing national security concerns. The initial ban, passed by the Trump administration, has been extended several times. It prohibits U.S. cell phone manufacturers from partnering with cited companies like Huawei and ZTE for cell phone components. In May 2020, the ban was extended again, this time until May 2021.
Despite the ban, the U.S. Department of Commerce issued a 90-day temporary extension that allows Huawei to continue to provides updates to its existing U.S. consumers. The extension comes on the heels of a survey sent out to U.S. businesses, asking how a complete ban on Huawei products would affect their businesses. However, the Department of Commerce warned that this is likely the last extension of its kind, and encouraged businesses with Huawei smartphones and network components to consider investing in U.S.-made alternatives. The extension is set to expire on August 13, 2020.
The national security risk designation prevented access to an $8.5 billion government fund to Huawei and ZTE’s rural U.S. customers that could be used to purchase equipment. The lapse of the temporary extension could mean that rural carriers will need to remove and replace existing networks before the ban expires.
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