Archive photo The American flag behind the Huawei logo. Illustration. REUTERS / Ruvic nut.
SHANGHAI / NEW YORK, May 21 (Reuters) – The US has temporarily eased Huawei's trade restrictions to minimize interruptions to its customers, a move that the founder of the world's largest telecommunications equipment maker said doesn't mean much because he was ready. for the action taken by Washington.
The Commerce Department last week imposed restrictions on China's Chinese technologies to buy US goods, an escalation in the trade war between the two largest economies in the world, stating that the company was involved in anti-security activities national.
Both countries have increased tariffs on their assets in the last two weeks after US President Donald Trump said that China did not honor the commitments made earlier in the negotiations.
On Monday, the Commerce Department granted Huawei a license to buy US goods until August 19 to maintain existing telecommunications networks and provide software updates to the company's smartphones, a move it tries to give operators time make other agreements
Shares of Huawei's US suppliers, including Qualcomm, Intel Corp and Lumentum Holdings Inc, rose on Tuesday, with the Philadelphia Semiconductor index rising by more than 1%.
Huawei is still prohibited from buying American-made hardware and software to make new products without obtaining new licenses, which are difficult to obtain.
Huawei's founder, Ren Zhengfei, told Chinese state media Tuesday that the pardon had little meaning for the company, as it was preparing for such a scenario.
"The actions of the US government at this time underestimate our capabilities," Ren said in an interview with CCTV, according to a transcript published by the Chinese state network.
The temporary license suggests changes in Huawei's supply chain that could have immediate, far-reaching and unintended consequences for its customers. The Commerce Department said it will consider whether to extend the licensing period beyond 90 days.
Report by Karen Freifeld in New York, David Shepardson in Washington and Brenda Goh in Shanghai, Additional report by Diane Bartz in Washington, Angela Moon, Ryan Woo, Cate Cadell and Lusha Zhang in Beijing, Supantha Mukherjee in Bengaluru, Spanish edition by Manuel Farias
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