At the same time, Commerce said it was renewing a temporary general license that permits companies in the United States to sell products to Huawei on a limited basis, such as to provide security updates to Huawei devices. The renewal lasts for 90 days and went into effect on Monday.
Huawei is a fulcrum in Trump’s wider trade war with China. On Sunday, Trump tweeted that the United States is “doing very well with China, and talking!” after economic adviser Larry Kudlow appeared to indicate progress toward a deal.
Meanwhile, on Fox Business on Monday, Commerce Secretary Wilbur Ross claimed that Chinese vendors have borne “all or part of the hit” from Trump’s tariffs on Chinese-made goods.
In a statement announcing the entity list move, Ross said the extension of the temporary general license reflects that “more time is necessary to prevent any disruption.”
Although the extension is a good thing for Huawei’s business, the company continues to vehemently oppose its inclusion on the blacklist. The US government has now expanded the ban to include Huawei and 118 of its affiliated businesses.
“It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security,” Huawei said in a statement. “These actions violate the basic principles of free market competition. They are in no one’s interests, including US companies. … The extension of the Temporary General License does not change the fact that Huawei has been treated unjustly.”
Washington escalated its battle with Huawei in May when it placed the company on a trade blacklist, barring American companies from selling the company software and components without a license.
Huawei smartphones run on Google’s Android operating system and come with popular apps like Google Maps and Gmail. Without access to Google services, Huawei’s devices become a lot less attractive to users outside of China.
“Today’s decision won’t have a substantial impact on Huawei’s business either way,” the company said. “We will continue to focus on developing the best possible products and providing the best possible services to our customers around the world.”