US technology companies will be allowed to continue selling to Huawei under certain circumstances for another three months, after the US commerce secretary extended a temporary reprieve for groups such as Google.
Wilbur Ross on Monday said the Trump administration would extend a temporary licence for companies to sell to the Chinese telecoms equipment maker if they are selling repairs or updates to existing systems.
The exemption, which will apply for a further 90 days, only applies if the products in question are deemed not to pose a threat to national security.
The reprieve will allow Google to continue updating its Android software on Huawei smartphones, for example. It has been issued despite an increase in hostile rhetoric from US president Donald Trump towards the Chinese company.
Mr Ross said in a statement: “As we continue to urge consumers to transition away from Huawei’s products, we recognise that more time is necessary to prevent any disruption.”
Separately, he told the Fox Business television channel that the move would allow rural US telecoms companies that use Huawei “a little more time to wean themselves off”.
Mr Trump took action against the Chinese company earlier this year, announcing he would prepare the way for a ban on Huawei products in the US and immediately prohibit it from buying American- made goods. US security officials argue the company poses a risk to national security because its telecoms equipment could be used by Beijing for spying.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp