Commerce Secretary Wilbur Ross said Monday that the United States will extend by 90 days a limited reprieve on U.S. technology sales to Huawei.
The U.S. government blacklisted the Chinese technology giant in May, deeming it a national security risk and restricting sales of U.S. technology to it.
But it granted a limited temporary reprieve to support existing equipment and ease the burden on U.S. rural internet and wireless companies. That reprieve would have expired Monday had Ross not issued the extension.
The extension was announced a day after President Donald Trump said the U.S. shouldn’t be doing business with Huawei.
Ross’s comments Monday morning sent shares of U.S. computer chip makers higher.
But Ross also announced that the U.S. was adding 46 Huawei affiliates to the list of 69 already affected by sanctions. He also said the U.S. has granted no special licences that would let any U.S. supplier sell technology to Huawei not affected by the limited reprieve.
Huawei is China’s biggest phone maker, and sales to the company account for a significant portion of revenues for some U.S. suppliers.
Ross said the main aim of Monday’s announcement is to give the U.S. companies that rely on Huawei more time to transition away from reliance on its products.
“Some of the rural companies are dependent on Huawei, so we’re giving them a little more time to wean themselves off,” Ross said during an interview with Fox Business Network.