Reprieve doesn't change crux of Huawei issue

The US Department of Commerce said on Monday it will extend a temporary license loosening restrictions on business deals with China's tech giant Huawei Technologies Co for another 90 days, a move that is being hailed as one that could help build an atmosphere conducive to the two sides concluding their highly anticipated phase one trade deal at an early date.

Yet China has repeatedly said its stance on the trade talks will not change, with or without a US reprieve for Huawei. Since the United States put Huawei on its Entity List because of alleged national security concerns in May, this is the third time that it has allowed US companies a 90-day extension to conduct "specific, limited engagement in transactions" with Huawei.

The repeated extensions do not alter the fundamental issue because they apply to technology sales and transfers necessary for existing networks and services to continue to operate. They are simply aimed at helping maintain the support the administration gets from rural communities in the US whose carriers rely on Huawei's equipment in their 4G networks. They do not alter the basic motivation for the administration putting the Chinese company in its crosshairs, which is that it fears the internet of things will not be subject solely to its will.