U.S. expected to grant another extension amid trade battle with Beijing

Huawei sign.
(Image credit: FRED DUFOUR/AFP/Getty Images)

Delays, delays, delays.

The U.S. Commerce Department is expected to grant Huawei a 90-day extension that permits the Chinese technology firm to buy supplies from U.S. companies, two sources familiar with the situation told Reuters. The reason behind the extension is so that Huawei can service existing customers. The agreement, which was set to lapse on Aug. 19, will allow Huawei to maintain existing telecommunications networks and provide software updates to Huawei handsets.

The U.S. blacklisted Huawei earlier this year, alleging the company could potentially harm U.S. national security and foreign policy interests. Reuters reports that the decision to grant Huawei the temporary reprieve could change by Monday. President Trump and Chinese President Xi Jinping are expected to discuss the firm in a call this weekend.

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It's the second significant delay this week amid the ongoing trade war between Beijing and Washington. On Tuesday, the Office of the U.S. Trade Representative announced certain products would not be subject to a 10 percent tariff on Chinese imports to the U.S. until after the holiday season. Huawei throws another wrinkle into the U.S.'s plan, as analysts question what the concessions might mean for potential future negotiations.

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Read more at Reuters.

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Tim O'Donnell

Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.