UPDATE The Department of Commerce Monday extended its Temporary General License, which gives carriers and consumers a limited time use of goods from Huawei and affiliate companies, to essentially wean them off of Huawei networking equipment. The license, which offers “narrow exceptions,” was set to expire 90 days from yesterday. This is the second 90-day extension for Huawei gear.
“As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” said Secretary of Commerce Wilbur Ross. “Simultaneously, we are constantly working to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”
The Commerce Department also added 46 Huawei affiliates to its Entity List, a blacklist that bans the company from buying parts and equipment from American firms without U.S. government approval. The Department of Commerce concluded Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interests. Those include alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of U.S. sanctions.
Huawei opposed the move, stating: “It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security.” The actions violate the basic principles of free market competition and “are in no one’s interests, including U.S. companies,” the company said. “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership. We call on the U.S. government to put an end to this unjust treatment and remove Huawei from the Entity List,” Huawei continued.
August 20, 2019