The United States will extend a reprieve that permits China’s Huawei Technologies to buy components from US companies to supply existing customers, the Commerce Department said on Monday, but it also moved to add more than 40 of Huawei’s units to its economic blacklist.
The extension, dated on Thursday and first reported by Reuters on Friday, was announced by US Commerce Secretary Wilbur Ross, even though President Donald Trump suggested on Sunday that no such reprieve would be granted.
Shares of US chipmakers that sell to Huawei rose, including those of Qualcomm, Intel, and Micron Technology.
The 90-day extension “is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat,” the department said in a statement.
“As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” says Ross.
Huawei said in a statement that the temporary extension “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.”
Trump had indicated over the weekend that there would be no extension, saying what would happen would be the “opposite” of what was reported on Friday. “We’re actually open not to doing business with them,” Trump said on Sunday.