Google will work with Huawei for the next 90 days after US eases restrictions

Mail Online | 5/21/2019 | Keith Griffith For;Reuters;Associated Press
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Google has been granted a 90-day extension to continue to work with Huawei, in an easing of stringent U.S. restrictions on the Chinese telecom equipment and phone maker.

The U.S. Commerce Department blocked Huawei Technologies from buying U.S. goods last week, a major escalation in the trade war between the world's two top economies, saying the firm was involved in activities contrary to national security.

Countries - Import - Tariffs - Goods - Weeks

The two countries increased import tariffs on each other's goods over the past two weeks after U.S. President Donald Trump said China had reneged on earlier commitments made during months of negotiations.

On Monday, the Commerce Department granted Huawei a license to buy U.S. goods until August 19 to maintain existing telecoms networks and provide software updates to Huawei smartphones, a move intended to give telecom operators that rely on Huawei time to make other arrangements.

Huawei - American-made - Hardware - Software - Products

Huawei is still prohibited from buying American-made hardware and software to make new products without further, hard-to-obtain licenses.

Huawei founder Ren Zhengfei on Tuesday told Chinese state media that the reprieve bore little meaning for the company as it had been making preparations for such a scenario.

US - Government - Actions - Moment - Capabilities

'The U.S. government's actions at the moment underestimate our capabilities,' Ren said in an interview with CCTV, according to a transcript published by the Chinese state broadcaster.

The U.S. controls 'will have no impact within this company' and none on development of next-generation telecom technology, Ren said. He said some low-end business might be affected.

Chip - Experts - Huawei - Claims - Supply

Chip experts have called out Huawei on its claims that it could ensure a steady supply chain without U.S. help, saying the technology it buys from American companies would be 'hard to replace'.

Nearly 16 percent of Huawei's spending on components in 2018 went to U.S. firms including Qualcomm, Intel and Micron Technology, analysts said.

Monday - License - Companies

Monday's temporary license is likely to allow companies such as...
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