US grants 90-day extension to businesses to work with Huawei

The United States Department of Commerce on November 18 granted another extension of 90 days for businesses to cease work with China's telecom giant, Huawei. According to the White House, the second extension in Temporary General License (TGL) will allow service providers to continue to offer their coverage in 'some of the most remote areas' of the country which would have been 'left in dark'. Wilbur Ross, the Secretary of Commerce said that the department will continue to actively monitor the technology exports in order to ensure that innovations are not harnessed by those who 'threaten national security'. 

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Chinese companies pose a threat

The US Attorney General William Barr said that Chinese firms like Huawei and ZTE Corp pose a threat to national security and thus 'cannot be trusted'. Barr also supported the proposal to protect the US rural wireless carriers using an $8.5 billion government's fund for purchasing equipment or any other services from the company. In a letter to the Federal Communications Commission, Barr said that considering the previous track record of the company and the various practices of the Chinese government, it is not easy to trust Huawei and ZTE. The FFC, which is scheduled to vote on November 22, said it will propose the requirement of the US carriers to replace the equipment in the companies. 

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The second-largest smartphone brand

Unnoticed to the Americans, Huawei Technologies Ltd is the second-largest smartphone brand in the world and the biggest maker of the switching gear at the core of phone networks. Out of 50 global phone carriers, Huawei equipment is used by 45 of them. The Chinese telecom is also considered as the pioneer in the emerge of next-generation or 5G. The company not only promises speedy internet services but also support futuristic applications like self-driving cars. The 'next generation' approach has ended up raising security concerns in Western countries, making 5G a politically sensitive issue. During the Global Forum, Ken Hu also said that the shift in the market will cause the US to lose $11 billion worth of business along with thousands of jobs. 

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