TECH

Trump extends telecom supply chain decision, targeting Huawei and ZTE

WASHINGTON / NEW YORK (Reuters) - United States President Donald Trump extended another executive order signed a year ago on Wednesday declaring a national emergency and preventing companies in the country from using telecommunications equipment manufactured by companies that the US government considers that they represent a risk to national security.
The order invoked a law that gives the president the authority to regulate trade in response to a national emergency that threatens the United States. Lawmakers said Trump's 2019 order was directed directly at Chinese companies like Huawei and ZTE.
On the other hand, the U.S. Department of Commerce is expected to extend a license, which expires on Friday, allowing U.S. companies to continue doing business with Huawei, a person familiar with the matter said.
The department issued extensions to the temporary license and extended it until April 1. Huawei, the world's second-largest smartphone maker, is also a major telecommunications equipment company that provides 5G network technology.
In March, the Commerce Department held a public consultation on whether to issue future extensions and asked what the impact would be if the temporary general license is not extended. The Commerce Department also asked about the costs associated with terminating licenses.
The mobile phone association CTIA asked the department to approve the extension of the "long-term" license, saying that "now is not the time to undermine the ability of global operators to maintain the health of networks".
The Commerce Department and Huawei declined to comment.
Since including Huawei on an economic blacklist in May last year, citing national security concerns, the department has allowed the purchase of some US-made products, a move aimed at minimizing disruptions to customers, many of whom operate wireless networks in the area. rural.
In November, the US telecommunications agency (FCC) designated Huawei and ZTE as national security risks, preventing operators in rural areas in the United States from using a $ 8.5 billion US government fund to purchase 

David Shepardson and Karen Freifeld