Huawei may get slight reprieve in US markets with extension of trade waiver

During the trade war between the United States and China, Huawei has often been the focus of discussion. The world’s second-largest smartphone OEM may get a bit of breathing room; a temporary general license that allows some U.S. businesses to deal with Huawei may get a six-month extension.

Huawei was one of the several Chinese firms blacklisted by the United States back in May, banning U.S. companies from selling to or buying from Huawei. However, in August, the U.S. Department of Commerce granted a temporary general license that allowed certain business transactions between Huawei and U.S. companies. That general license is set to expire on Monday, November 18th. According to Politico, two people familiar with the matter claim the Commerce Department will extend that agreement by six-months.

While the extension will help out some U.S. companies, it’s likely not the ones you’re thinking of. Chip manufacturers like Qualcomm and Intel will still be unable to transact with or export to Huawei. Instead, the license was granted to help out rural telecommunications companies, which rely heavily on Huawei-made infrastructure.

The license allows the telecom companies to receive software updates and patches from Huawei in addition to new equipment. The license also helps cellular carriers push updates to supported Huawei handsets. Chipmakers are still barred from sending silicon to Huawei, a move which the say is unfair as exporting hardware presents no security risk.