US to extend license for its companies to continue business with Huawei

The US Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei after receiving more than 200 requests. (Reuters)
Updated 17 November 2019

US to extend license for its companies to continue business with Huawei

  • A longer extension is in the works but has not yet been finalized due to regulatory hurdles

WASHINGTON: The Trump administration is set to issue a two-week extension of a license allowing US companies to continue doing business with China’s Huawei Technologies, two sources familiar with the deliberations said.

The extension of around two weeks is far shorter than the prior 90-day extension and a longer extension is in the works but has not yet been finalized due to regulatory hurdles, said one source who was briefed on the matter.

After adding Huawei to an economic blacklist in May citing national security concerns, the US Commerce Department has allowed it to purchase some American-made goods in a move aimed at minimizing disruption for its customers, many of which operate networks in rural America.

The extension will be announced on Monday, when the earlier reprieve is set to expire, the sources said, declining to be identified as the extension has not been publicly announced.

A spokesman for Huawei, the world’s biggest maker of telecom network equipment, said the company does not comment on rumors and speculation. The Commerce Department declined to comment.

HIGHLIGHTS

  • US added Huawei to an economic blacklist in May citing national security concerns.
  • The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei.

Commerce Secretary Wilbur Ross told Fox Business Network on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks.

“There are enough problems with telephone service in the rural communities — we don’t want to knock them out. So, one of the main purposes of the temporary general licenses is to let those rural guys continue to operate,” Ross said.

The development comes amid discussions between the US and China aimed at coming to an initial agreement to resolve a trade war that has lasted for over a year.

In blacklisting Huawei, the US government said it had a “reasonable basis to conclude that Huawei is engaged in activities that are contrary to US national security or foreign policy interests.” Huawei has repeatedly denied the accusations.

Attorney General William Barr said on Thursday Huawei and ZTE Corp. “cannot be trusted,” as he backed a proposal to bar US rural wireless carriers from tapping an $8.5 billion government fund to purchase equipment or services from them.

In May, President Donald Trump also signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk. The Commerce Department was due to draw up an enforcement plan by mid-October but has yet to publish one.

The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei after receiving more than 200 requests. 


Aramco stock briefly touches $2 trillion before easing

Updated 12 min 41 sec ago

Aramco stock briefly touches $2 trillion before easing

  • The stock advanced to SR 38.7 ($10.32) before easing to SR37 about 15 minutes into the session
  • The stock hit the maximum allowed in a trading session on its debut on Wednesday

LONDON: Saudi Aramco's shares opened up 10 percent higher in their second trading session on Thursday, briefly sending its market capitalization above $2 trillion before easing.

The stock advanced to SR 38.7 ($10.32) before easing to SR37 about 15 minutes into the session. The stock hit the maximum allowed in a trading session on its debut on Wednesday.

Aramco became the world's biggest IPO last week by raising $25.6 billion - more than the $25 billion raised by Alibaba in 2014.

The share sale took place at a turbulent time for the global oil industry, increasingly under the spotlight because of its greenhouse gas emissions. At the same time, a global supply glut caused in part by the growth of the US shale oil sector has dampened investor sentiment towards the sector. Plans for the share sale faced a further shock in September when Saudi Aramco's main oil processing facility in Abqaiq was hit in a drone attack.

Despite the unfavorable global market mood, the Saudi government pressed ahead with the sale that has long been a cornerstone of the Kingdom's efforts to modernize its economy and develop its financial sector.
It is expected to be followed by more privatizations as Saudi Arabia seeks to curb its budget deficit.

Announcing the Saudi budget earlier in the week, Finance Minister Mohammed Al-Jadaan said that the proceeds from the Aramco IPO would be reinvested, helping to create more revenue channels for the government.

Within just one hour of Aramco chairman Yasir Al-Rumayyan ringing the trading bell, some 766.8 million shares had changed hands.