On the 10th of March, the Trump government extended the license of Huawei so that US companies can do business with the Chinese telecom giant until May 15. As we mentioned earlier, the US government has been keeping Huawei on tenterhooks allowing them to operate their business with other US companies temporarily ever since the ban was originally imposed. That is because, although the US considers Huawei as a security threat, most of its wireless networks in rural regions depend on Huawei’s equipment, which happens to require some American-made goods to manufacture. Hence, this new temporary license is all about helping American telecom carriers and their customers in the rural parts of the country.
For those unaware, Huawei was hit with a ban back in 2019, which had the company lose partnering rights with US based companies. But since then, special licenses were granted to companies that applied for it, to allow temporary collaboration with the Chinese electronics company.
The original license was a temporary measure and had already been extended till 1st April 2020. Through the license, companies like Microsoft can continue providing their services to Huawei, like Window’s for laptops as an example. Although the ban was enforced, the US Commerce Department had allowed it to still purchase from US companies to avoid disruption in the market.
This clearly demonstrates how Huawei plays a vital role in the world’s telecom sector. But still, the US government has been continuously asking other countries to avoid building their 5G networks in partnership with Huawei over security concerns.