The U.S. Commerce Department has said that it may scale back the restrictions it had imposed on Chinese telecoms giant Huawei Technologies.
The move follows the decision to add the tech company to a blacklist that effectively banned the Chinese firm from accessing U.S. supplies and would also have seen it struggle to provide services to existing customers within the U.S.
But now the Commerce Department is said to be planning to issue the company with a temporary general license. A spokeswoman said that the license should temporarily “prevent” any interruptions to the firm’s current network operations.
A temporary license would allow access to the internet as well as mobile phone dealers in areas with a scarce population like the eastern Oregon and Wyoming that have recently bought network equipment from the Chinese company.
Huawei is still restricted from purchasing U.S. parts and components to make new products. However, they are free to buy U.S. goods purposely to make the existing customers have reliable networks and equipment.
It is alleged that Huawei’s products can be used illegally to spy on Americans but the company has strongly disagreed with the allegations.
According to a spokesperson for Huawei, the U.S. may still issue the license but the U.S. suppliers would be required to have separate licenses in order to trade with Huawei.
The process may be tiresome and cumbersome for them. Last year Huawei used about $70 billion to purchase components out of which, $11 billion was used on U.S. firms like Micron Technology, Qualcomm and Intel Corp.
The temporary general license is due after 90 days from the day of issue and it will also appear in the Federal Register.
The U.S. has used the pending criminal case in Brooklyn filed against Huawei as a reason to add it to its entity list. The company was accused of planning to defraud a bank in order to illegally get American goods and services in Iran. Another accusation was an attempt to use the international banking system to transfer money outside the country.