The U.S. 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, ONA reports quoting Reuters.
The U.S. Commerce Department will allow Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets.
The company is still prohibited from buying American parts and components to manufacture new products without license approvals that likely will be denied.
The roll back, 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.
On Thursday, the U.S. Commerce Department added Huawei and 68 entities to an export blacklist that makes it nearly impossible for the Chinese company to purchase goods made in the United States. Huawei is now on a list of entities that are banned from doing business with U.S. companies without licenses that will be extremely difficult to obtain.
Reuters reported Friday that the department was considering the temporary move to allow time for companies and people who have Huawei equipment to maintain reliability of their communications networks and equipment, citing a government spokeswoman.