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Huawei’s license may be renewed or not based on decisions in American Tech Firms

U.S. President Donald Trump is set to decide Monday on whether to extend a temporary agreement allowing Huawei to do business in the U.S. — and Washington’s decision will likely be influenced by American tech firms, according to research firm International Data Corporation.

The U.S. Commerce Department placed the Chinese tech giant on a blacklist — the so-called Entity List — in May, preventing American companies from selling or transferring technology to Huawei unless they were granted a special license. Days later, the U.S. government eased some of those restrictions for 90 days. That temporary reprieve is set to end on Monday.

Del Prete explained that Huawei’s core product lines — including telecommunications equipment, servers, storage, networking gear and even its smartphones — have “very, very complex supply chains and they rely on technology that has a very, very long lead time.” There are no near-term alternative ways for Huawei to access those advanced technologies without buying them from American companies, Del Prete said.

Ahead of the deadline, Trump told reporters on Sunday that Huawei was a national security threat. “We’ll see what happens. I’m making a decision tomorrow,” Trump said about the possible license extension.

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