Huawei temporary trade licence has been extended for another 90 days. This should be at least a room of breathing air for the Chinese smartphone maker. The company according to Reuters, will receive an extra 90-day extension to their temporary trade license.
Back in May this year, the company was banned by the US Government from trading with any US companies. But was given a 90-day temporary trade license a few days after the ban. Well, that license expired yesterday on the 18th of August.
Sourcing from Reuters has it that the US Commerce Department is set to offer the Shenzhen-based telecom company another 90-day temporary trade license.
The US and China are currently in an ongoing trade dispute. Their presidents; Donald Trump and Xi Jinping are set to meet later this week. In the meeting, it is expected that the future of Huawei will be discussed. And if everything goes on well, Huawei won’t need another temporary trade license when this rumoured one expires.
But at the moment, it looks like a tough ask that both countries come to an agreement this week. Huawei, on the other hand, is not leaving their fate in the hands of both countries president. The tech company earlier this month, released its own operating system – HarmonyOS. And according to them, it will replace the Android OS, should a day come when they are no longer allowed to use the OS from Google.
According to the US Commerce Department Wilbur Ross, over 50 companies applied for a special license to do business with Huawei in the last three months. Huawei in 2018 spent a total of $70 billion on tech-related components and around $11 billion went to US companies such as Intel and Qualcomm.
It’s hard to imagine Huawei being the loser if the banned doesn’t get lifted and no more temporary trade license. The tech company is indeed a powerhouse in its own rights. Only time will tell as we watch to see how this whole debacle ends.