US Gives Relief to Huawei to Keep Mobile Networks Operating

Huawei is under scrutiny around the globe over concerns regarding its close ties with the Chinese government.

(Photo: AP/Andy Wong)

The US government, on Monday, 20 May eased some of its restrictions on Chinese manufacturer Huawei that were imposed last week, news agency Reuters reported.

The US Commerce Department will allow Huawei to buy American-made goods in order to maintain existing networks and provide software updates to existing Huawei devices. However, it still can’t buy American parts to manufacture without license approvals, which, according to the Reuters report, are likely to be denied.

The roll back will be valid for 90 days only.

This comes after last week, when the US Commerce Department blacklisted Huawei and 68 other entities, making it impossible for the Chinese company to purchase goods made in the United States.

Huawei is now on a list of entities that are banned from doing business with US companies without licenses, according to the Reuters report.

The relief on Monday was created as a temporary general license that will be in effect till 19 August, in order to let Huawei purchase goods to maintain existing networks and equipment and provide software updates.

(With inputs from Reuters.)