The US government has given Huawei a 90 day extension to work with US customers. The extra time will give local communication companies enough time to switch from the company’s products. The reprieve will also grant the Tech Giant a chance to maintain the existing equipment and send updates to its U.S phone users.
The Trump administration banned Huawei because of “involvement in activities determined to be contrary to national security”. First, the US government banned the company’s products for government use. Later ,it barred transactions between American companies and the firm unless approved by the US government. As a result, sanctions on the company also affected its 46 subsidiaries.
The ban affected both the Chinese giant and its customers. On one hand, it limited Huawei access from Google’s OS and Intel processors. On the other hand, local companies suffer from high switching costs as much as $ 1.2 million.
The Huawei reprieve might ease tensions between China and the US. At the same time, it indicates some progress in the U.S China trade negotiations.
Related:
