As many of you would have heard by now, Huawei has run into some trouble with the US government where they were blacklisted from doing business with US companies, such as Google. While it might seem like this is more about “punishing” Huawei, the reality is that it will affect everyone.This includes US companies whom Huawei has been buying from and customers as well. Perhaps previously not estimating the impact of such a ban, the US Commerce Department has recently announced that they will be granting Huawei a temporary reprieve where for the next 90 days, Huawei will be able to continue purchasing American-made products.
However, these purchases can only be for products that are used to maintain the company’s existing networks and to provide software updates to existing Huawei devices. It means that Huawei will not be able to purchase components to manufacture new products. According to Washington lawyer Kevin Wolf, a former Commerce Department official, “It appears the intention is to limit unintended impacts on third parties who use Huawei equipment or systems. It seems they’re trying to prevent network blackouts.”
It is unclear how long this blacklist is expected to remain in effect. Previously, one of Huawei’s competitors ZTE had also run into a similar sort of ban, but they later managed to sort it out a few months later.
Filed in . Read more about Huawei and Legal. Source: reuters