The US Department of Commerce announced on Thursday that it was issuing a 45-day extension allowing US companies to continue doing business with Chinese telecoms giant Huawei Technologies Co. It is the fourth such extension by the US.
A series of extensions shows the self-contradictory attitude of US politicians, Fu Liang, a Beijing-based industry expert, told the Global Times on Thursday.
"The US can't circumvent Huawei given its leading position in the global telecommunications sector. On the other hand, US politicians are leveraging this to contain China's technological development," Fu said.
If the US continues to restrict its companies from doing business with Huawei in the long run, the US will bear the brunt of the damage as it has forced Huawei to accelerate its technological self-reliance or seek alternative suppliers from other countries, Fu said.
Due to price advantage of Huawei's products, the company's presence in the US is largely in rural areas. However, Huawei has no plans to actively expand its presence in the US amid mounting threats, analysts said.
After listing Huawei on an economic entity list in May 2019 due to "security concerns," the US Department of Commerce allowed some American companies to sell goods to Huawei in order to reduce market disruption.
The latest extension came after Germany's ruling parties and the French finance minister this week said Huawei would be allowed to help build local 5G infrastructure.
Industry insiders told the Global Times that more European countries will soon follow Germany and the UK, which have both stopped their Huawei bans.
On Thursday, the US brought new charges against Huawei, accusing it of stealing technology from six other companies.
Huawei told the Global Times on Friday that this new indictment is "part of the US Justice Department's attempt to irrevocably damage Huawei's reputation and its business for reasons related to competition rather than law enforcement."
"These new charges are without merit and are based largely on recycled civil disputes from last 20 years that have been previously settled, litigated and in some cases rejected by federal judges and juries. The government will not prevail on its charges, which we will prove to be both unfounded and unfair," Huawei said.
The charges come as the Trump administration considers harsher restrictions on the sale of US goods to Huawei, according to media reports.
"Like a person repeatedly sentenced to death, Huawei's resistance has been growing since the day it was put on the economic blacklist," Sun Yanbiao, head of Shenzhen-based research firm N1mobile, told the Global Times.
The US extension follows the signature of the phase one trade deal, in which China agreed to purchase an additional $200 billion of US products over the next two years, Sun said, noting that the US gesture will be conducive to the implementation of the deal.