Commerce Department extends reprieve to let US companies work with Huawei

A temporary license was due to run out Monday, but the department announced a last-minute extension.

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US companies can continue to work with Huawei for another 90 days.

Óscar Gutiérrez/CNET

The US Commerce Department said Monday it's extending a temporary general license that allows American companies to do business with Huawei for another 90 days. This follows an initial 90-day reprieve, which started in May and was set to end Monday.

The department blacklisted Huawei following an executive order from President Donald Trump that effectively banned Huawei from US communications networks. It required American companies to get a license to do business with the Chinese telecom giant, which is the subject of national security concerns due to its cozy relationship with the Chinese government. Huawei has also announced that it's making its own mobile operating system

Watch this: What is going on between Huawei and the US?

"As we continue to urge consumers to transition away from Huawei's products, we recognize that more time is necessary to prevent any disruption," Secretary of Commerce Wilbur Ross said in a statement Monday. "Simultaneously, we are constantly working at the department to ensure that any exports to Huawei and its affiliates do not violate the terms of the entity listing or temporary general license."

The department also said another 46 Huawei subsidiaries have been added to the list due to national security concerns, bringing the total to more than 100 added since May, the department said.

Huawei called the US government's actions unjust and said the decision to put more of its subsidiaries on the entity list was politically motived.

"These actions violate the basic principles of free market competition," the company said in a statement on Monday. "They are in no one's interests, including US companies."

First published at 5:47 a.m. PT.
Update, 6:20 a.m. PT: Adds more detail.
Update, 1:45 p.m. PT: Adds comment from Huawei.