After getting a 90-days interim period from the Pentagon for the second time, the Chinese tech juggernaut Huawei Technologies is slated to get another two weeks of an extension before the Entity List ban swings into action. As on Monday, Pentagon extended Huawei’s interim period by two weeks allowing it some time to secure contracts with U.S. companies that were snatched away in May when the U.S. imposed a trade ban between Huawei and the U.S. although the situation was relaxed in-between.
In Spite of people in a pit hole after the U.S. companies were denied trading with Huawei over any technologies or products except during the interim period, Huawei managed to stay strong recording an increase in revenue by 24.4 percent in last three quarters of this fiscal year when compared to its last fiscal year.
To summarize the situation, the U.S. Commerce Department upheld Huawei and 68 of its affiliate under a so-called Entity List putting these companies under national security concerns. Soon after, Huawei was banned from trading with any of the U.S. based companies for their products and technologies and services without proper approval. Merely a few days after the ban, Huawei was given a 90-days interim period to wrap up with acquiring contracts and do other businesses followed by a second 90-days extension.
This was recently followed by a two weeks extension before U.S. swings back into the trade ban between Huawei and the U.S. Furthermore, the Federal Communications Commissions (FCC) has proposed to designate both ZTE and Huawei as national security threats and has asked to halt its existing infrastructure. Furthermore, FCC has asked U.S. companies to replace all the ZTE and Huawei equipment as well.
Huawei is currently the second-largest smartphone maker after Samsung beating Apple to the dust. It is currently one of the leading 5G telecom companies reportedly years ahead of its closest competitors.
