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20.08.2019

Huawei gets another reprieve from US ban

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After delaying some tariffs on telecoms and computer equipment last week, the Commerce Department granted Chinese telco giant a further 90-day reprieve from a prohibition on US companies trading with it.

U.S. Commerce Secretary Wilbur Ross said he'll grant a 90-day reprieve allowing Huawei to continue buying components from American firms

Stocks impacted: Huawei Technologies Co Ltd (002502)

At the same time, Trump said on Sunday that he may not want to do business with the firm, saying that it posed a national security threat. As such, Huawei will continue to be able to use Google’s Android operating system on its smartphones, chips from U.S. companies like Qualcomm and continue to supply rural networks in the U.S. that depend heavily on Huawei. Huawei spent nearly $11 billion last year buying chips and other components from US firms, which is about 16% of the $70 billion spent overall by the Chinese company on components worldwide in 2018. Most big US semiconductor stocks jumped on the news. Those were Broadcom, Xilinx, Intel, Qualcomm, and Micron.

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