U.S. Will Continue Allowing Some Transactions With China's Huawei

The Trump administration placed Huawei on a trade blacklist earlier this year.
Posted at 11:37 AM, Aug 19, 2019

Commerce Secretary Wilbur Ross confirmed Monday that the U.S. will extend Huawei's temporary license that allows some transactions with American companies. 

The Trump administration placed the Chinese tech giant on a trade blacklist earlier this year. That restricted U.S. firms from selling components to Huawei without first getting government approval. But, the Commerce Department issued a temporary license to allow "specific, limited" transactions to support existing users.

The U.S. has long believed Huawei devices pose a national security threat. It has even pressured allies to move away from working with the telecom company. Huawei has repeatedly denied that its products pose a national security threat.

The tech company's previous temporary license was set to expire Monday, but that's now been extended until November. 

Reuters called the license a "bargaining chip" for the U.S. in ongoing trade negotiations with China.

Additional reporting from Newsy affiliate CNN.