US Commerce Department scales back restrictions on Huawei, allowing Chinese firm to maintain existing networks and provide phone updates
- Rollback, which is in effect for 90 days, suggests changes to company’s supply chain may have immediate, far-reaching and unexpected consequences
- US added Huawei to export blacklist last week, making it nearly impossible for firm to buy goods made in America
The US government on Monday eased some restrictions imposed last week on China’s Huawei, a sign of how the prohibitions on the telecommunications company may have far-reaching and unintended consequences.
The US Commerce Department will allow Huawei Technologies to purchase American-made goods so it can maintain existing networks and provide software updates to existing Huawei phones.
The company is still prohibited from buying American parts and components to manufacture new products without licence approvals that likely will be denied.
The rollback, which is in effect for 90 days, suggests changes to Huawei’s supply chain may have immediate, far-reaching and unexpected consequences.
“It appears the intention is to limit unintended impacts on third parties who use Huawei equipment or systems,” said Washington lawyer Kevin Wolf, a former Commerce Department official. “It seems they’re trying to prevent network blackouts.”
Huawei did not immediately respond to a request for comment.