Biz / Tech

Huawei cites unfair treatment after receiving 90-day reprieve for third time

Zhu Shenshen
Huawei calls on the US government to put an end to unjust treatment and remove it from the Entity List, according to the company.
Zhu Shenshen

Chinese tech giant Huawei said it was still being "treated unfairly" and called for removal from the Entity List after the US Department of Commerce announced on Monday that it will extend a temporary license loosening restrictions on business deals with Huawei for another 90 days.

It is the third time that the US government allowed US firms to get 90-day extension to have "specific, limited engagements in transactions" with Huawei since the Chinese tech firm was put on the Entity List over the so-called "national security concerns" in May.

The department issued 90-day temporary licenses on May 20 and August 19 respectively, to ease part of those export restrictions.

“Extending the Temporary General License won't have a substantial impact on Huawei's business either way. This decision does not change the fact that Huawei continues to be treated unfairly either,” Huawei said in a statement.

Adding Huawei in the Entity List has caused more harm to the US than to Huawei. This has done significant economic harm to the American companies with which Huawei does business, and has already disrupted collaboration and undermined the mutual trust on which the global supply chain depends, Huawei said, calling on the US government to put an end to this unjust treatment and remove it from the Entity List.

"The Temporary General License extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark," said US Secretary of Commerce Wilbur Ross in a statement on Monday.

If the Entity List prohibition was carried out fully and immediately, many of US rural carriers would be effectively shut down. Because Huawei’s products are generally “robust, reliable and relatively inexpensive” compared with other market options, according to Nelson Dong, a senior partner at the international law firm Dorsey & Whitney.

“The US traditionally opposes the imposition of non-market, government-imposed factors on private companies, and yet the BIS Entity List designation is plainly causing a non-market, government-imposed choice upon many American telecommunications providers across rural America,” Dong said in a statement sent to Shanghai Daily.

If forced to dump their investments in Huawei equipment and software, many of these providers would likely become financially strained and stressed. It’s hard to avoid the “going dark” scenario acknowledged by Secretary Ross, Dong added, who is also a current member of the board of directors of the National Committee on US-China Relations (NCUSCR).

Outside of the TGL scope, any exports, re-exports, or in-country transfers of items subject to the Export Administration Regulations will continue to require a license, if granted, after a review by the Bureau of Industry and Security under a presumption of denial, according to the department.

Chinese foreign ministry has repeatedly urged the United States to stop its unjustifiable bashing of Chinese enterprises, including Huawei, and to treat Chinese companies in a fair, just and non-discriminatory way.

On October 29, a Chinese foreign ministry spokesperson urged the United States to stop generalizing the concept of national security and unreasonably suppressing certain Chinese companies.

"We firmly oppose the United States abusing its state power and suppressing particular Chinese companies without any evidence. Such economic bullying behavior goes against the principle of market economy which the United States has always claimed to champion, nor shall it win the support of the international community," spokesperson Geng Shuang said at the press briefing.

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