US govt re­stric­tions on Huawei loos­ened again

China Daily (Hong Kong) - - FRONT PAGE - By MA SI [email protected]­

The US gov­ern­ment an­nounced that it would grant an­other ex­ten­sion of a tem­po­rary li­cense that loosens re­stric­tions on United States business deals with Huawei Tech­nolo­gies Co, in this case for 45 days. That’s half the length of pre­vi­ous ex­ten­sions.

The move came as Wash­ing­ton hit Huawei with a string of new ac­cu­sa­tions in­clud­ing rack­e­teer­ing and con­spir­acy to steal trade se­crets on Thurs­day.

Ex­perts said the moves in­di­cate that the US gov­ern­ment is in­ten­si­fy­ing its push to con­tain the rise of

Huawei, which will ul­ti­mately hurt the in­ter­ests of US tech­nol­ogy com­pa­nies that sup­ply com­po­nents to the Chi­nese com­pany.

The US De­part­ment of Com­merce an­nounced on its of­fi­cial web­site that the 45-day ex­ten­sion is “to pre­vent in­ter­rup­tion of ex­ist­ing net­work com­mu­ni­ca­tion sys­tems in ru­ral US re­gions and per­mit global net­work se­cu­rity mea­sures”.

This is the fourth ex­ten­sion since May, when Wash­ing­ton put Huawei on its En­tity List, which bans the com­pany from buy­ing US com­po­nents with­out spe­cial

gov­ern­ment ap­proval based on ac­cu­sa­tions of se­cu­rity risks.

The Com­merce De­part­ment is­sued 90-day tem­po­rary li­censes on May 20, Aug 19 and Nov 18. The ex­ist­ing li­cense was set to ex­pire on Sun­day.

China’s For­eign Min­istry spokesman Geng Shuang said on

Fri­day that the US gov­ern­ment has abused its na­tional power to un­rea­son­ably sup­press cer­tain Chi­nese en­ter­prises with­out pro­vid­ing any ev­i­dence.

Such eco­nomic bul­ly­ing is a bla­tant de­nial of the mar­ket econ­omy prin­ci­ples that the US has al­ways pro­moted, he said. It se­ri­ously da­m­ages the US gov­ern­ment’s own cred­i­bil­ity and im­age, and will also harm the in­ter­ests of US com­pa­nies, Geng said.

Bai Ming, a se­nior re­search fel­low at the Chi­nese Academy of In­ter­na­tional Trade and Eco­nomic Co­op­er­a­tion, said Wash­ing­ton’s mul­ti­ple ex­ten­sions un­der­line how ru­ral US tele­com car­ri­ers rely heav­ily on Huawei equip­ment for net­work cov­er­age and how US con­sumers are hurt more when nor­mal business links are sev­ered by po­lit­i­cal forces.

“The US gov­ern­ment may not ex­tend the li­cense in the fu­ture, which will hurt US tech com­pa­nies

that earn mil­lions of dol­lars by sup­ply­ing tech­nolo­gies to Huawei,” Bai said.

Xiang Li­gang, di­rec­tor-gen­eral of the In­for­ma­tion Con­sump­tion Al­liance, a tele­com in­dus­try as­so­ci­a­tion, said Huawei is work­ing on its in-house op­er­at­ing sys­tem and chips, which can help it mit­i­gate the ef­fects of US bans.

Mean­while, the le­gal bat­tle be­tween Wash­ing­ton and Huawei in­ten­si­fied, with the US De­part­ment of Jus­tice bring­ing new charges to the world’s largest tele­com equip­ment maker.

The al­le­ga­tions in­clude mis­ap­pro­pri­at­ing in­tel­lec­tual prop­erty from US tech­nol­ogy com­pa­nies and rack­e­teer­ing.

Huawei said in a state­ment, “This new in­dict­ment is part of the Jus­tice De­part­ment’s at­tempt to ir­re­vo­ca­bly da­m­age Huawei’s rep­u­ta­tion and its business for rea­sons re­lated to com­pe­ti­tion rather than law en­force­ment.”

The com­pany, based in Shen­zhen, Guang­dong prov­ince, said these new charges are with­out merit and are based largely on re­cy­cled civil dis­putes from the past 20 years that have been pre­vi­ously settled, lit­i­gated and in some cases, re­jected by fed­eral judges and ju­ries.

“The (US) gov­ern­ment will not pre­vail on its charges, which we will prove to be both un­founded and un­fair,” Huawei said.

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