On Monday, the grace period that Huawei was granted before preventing all trade with the United States ends. You could extend this situation for an additional 90 days to obtain materials.
Huawei is still in trouble as it faces the biggest trade block it has ever had. Some time ago he was added to a black list of the United States Department of Commerce that will prevent him from doing business with United States companies for fear of espionage and for 90 days he has been able to continue without limitations, but that period ends tomorrow, Monday.
But as is usual with the Donald Trump administration, there are constant changes in important decisions and there is no assurance that some major threats will be made. According to media close to Reuters, they are not sure that Huawei will be blocked on Monday and there are many indications that it may have a special grace period of another ninety days, in which they can do business.
Another ninety days without knowing if a lock will be made
During this time, Huawei will be able to do business relatively normally, obtaining both parts for the hardware it needs as well as additional software to do maintenance for the mobiles that are still in service.
The goal is clearly to try to limit Huawei's power and prevent alleged espionage, but those who will suffer the most are US companies. For example, Huawei is Micron's biggest customer last year and it will be difficult to replace, as other customers are unlikely to be able to replace them. Others that will be left without the money provided by the Chinese company are Qualcomm and Intel, in total there are about 11.000 million dollars that were spent annually in companies in the United States. It will be XNUMX important days to attempt the almost impossible mission of convincing the government that the blockade will seriously affect companies in the country.
Source Reuters
