It is expected that the United States Commerce Department would extend a short-term general license and give Huawei Technologies Inc. another 90 days which will allow the tech giant to purchase supplies from the US firms to help it provide service to its current customers, said sources having knowledge about the situation.
The department initially had allowed Huawei to buy a few American-manufactured goods in the month of May a while after placing the company on US trade ban list- a move which is aimed to minimize disturbance for its users, several of which use networks across rural America.
Extending an extension would refresh an agreement which would end on 19 August, thus continuing the ability of Huawei to maintain its existing telecom networks as well as offer software updates to its handsets.
The circumstance surrounding the extended license, which is a major bargaining tool for the US with regards to its trade war with China, stays fluid. In fact, the decision of continuing the Chinese company’s reprieve may change before the next week’s deadline, said sources.
President of China, Xi Jinping and Trump are both expected to conduct discussions about Huawei over a call ahead of the deadline, said one of the sources.
Huawei is yet to comment on the matter.