United States expected to extend Huawei deadline another 90 days

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United States expected to extend Huawei deadline another 90 days

The US Commerce department had been working out a plan to extend a reprieve for China’s Huawei Technologies, which in effect would allow the Chinese tech conglomerate to purchase critical tech supplies from its US suppliers for another 90 days, a special privilege previously scheduled to be nullified by August 19th, at least two people directly briefed over the subject-matter unveiled on Saturday, the 17th of August 2019, in terms of anonymity as the sources had not been authorized to speak about the issue in public.

According to one of the two sources familiar with the condition, US Commerce Department had been slating out a plan to extend Huawei blacklist deadline for another 90 days, so it could service its existing customers. In point of fact, on last May, US Commerce Department initially allowed Huawei to purchase critical tech supplies from US suppliers shortly after US President Donald Trump had blacklisted the company citing national security concerns and imposed a 25 percent tariff hike on $200 billion worth of Chinese imports.

Amid doldrums of an escalated trade tension between the United States and China, the situation surrounding the license for Huawei Technologies Co. had become a chip of bargain for the US President Donald Trump in his grueling trade war with Beijing.

Besides, when US Commerce department blacklisted Huawei on last May, it spurred a swath of jittering among the investors and resulted in a major escalation in the trade war between the first- and second-largest economies of the world, while latest reprieve could be seen as a cooldown attempt by the United States as Beijing had been planning for harsh retaliation including a steep curb on exports of rare earth elements, analysts suggested.