The Trump administration said on Tuesday that it will renew Huawei's temporary license until May 15, during which time U.S. companies are allowed to continue doing business with Huawei, according to Reuters.
Since May 2019, the US Department of Commerce has included Huawei in the "Entity List" on the grounds of national security. Subsequently, the department has repeatedly extended the temporary licensing restrictions.
Most recently, the US government announced on February 13 local time that it would be extended to April 1, 2020. This extension is the fifth time.
The U.S. Department of Commerce has sought public comments on whether Huawei's temporary general license period should be further extended in the future, and asked "What is the impact on your company or organization if the temporary general license period is not extended?" It also asked about the costs associated with the termination of the temporary general license period.
According to current information, after the US Department of Commerce listed Huawei in the "Entity List", many American companies have incurred huge economic losses.
Taking the semiconductor industry alone as an example, the Wall Street Journal has reported that if Sino-US trade competition continues, the US's leadership in the global semiconductor market may be lost.
In the chip industry, the Boston Consulting Group said that if the United States does not export chips and related equipment to China and China does not import U.S. electronic hardware and software products, the annual sales of U.S. chip companies will lose about $83 billion (about 580 billion yuan ), Which can account for one-third of the total sales of American chip companies in 2018.
In addition to the "Entity List," U.S. President Trump signed an executive order in May 2019 banning U.S. companies from using telecommunications equipment manufactured by companies deemed to pose a national security risk. At the same time, the Trump administration has stated that foreign governments should ban Huawei from building 5G networks.
However, so far, Huawei has launched 5G cooperation with many countries, including the United Kingdom, Germany, Monaco, France, Malaysia, Russia, Cambodia, and so on. At the same time, as of last month, Huawei announced that it had obtained 91 5G commercial contracts, compared with 81 for Ericsson and 68 for Nokia.
Earlier, Huawei stated that regardless of whether the temporary license was extended, its substantial impact on Huawei's operations would not be changed, and it would not change the unfair treatment that Huawei has been suffering.
Huawei has always believed that the addition of Huawei to the "Entity List" by the US Department of Commerce will do more harm to the United States than to Huawei. Not only will it cause huge economic losses to U.S. companies that cooperate with Huawei, but it will also disrupt cooperation and mutual trust in the global supply chain.
