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Temporary General Licence for Transactions with Huawei Set to Expire

The 90-day temporary general licence issued on 20 May by the U.S. Commerce Department’s Bureau of Industry and Security for transactions with Huawei Technologies Co. Ltd. and 68 of its non-U.S. affiliates is set to expire on 19 August. This TGL was issued in response to requests from U.S. technology firms such as Google and Qualcomm following Huawei’s addition to the U.S. Entity List, which forbids U.S. firms from engaging in export transactions with listed firms.

Permitted transactions under the TGL include (i) continued operation of existing networks and equipment, including software updates; (ii) continued handset support; (iii) continued cybersecurity research regarding security vulnerabilities; and (iv) continued engagement on development of 5G standards by a duly recognised standards body such as the Institute of Electrical and Electronics Engineers or the International Organisation for Standards. Prior to any transaction under the TGL, a U.S. firm is required to create and keep a certification statement specifying how that transaction complies with the TGL.

U.S. technology firms indicate that their ability to make business plans is hindered by uncertainty regarding pending DOC action on the TGL. As of 16 August, the agency had not made any official announcements regarding any eventual renewal of the TGL.

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