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US extends limited reprieve on tech sales to China's Huawei

Commerce Secretary Wilbur Ross said today that the United States will extend by 90 days a limited reprieve on US technology sales to Huawei.

The US government blacklisted the Chinese technology giant in May, deeming it a national security risk and restricting sales of US technology to it.

But it granted a limited temporary reprieve to support existing equipment and ease the burden on US rural internet and wireless companies. That reprieve would have expired today, had Ross not issued the extension.

The extension was announced a day after President Donald Trump said the US shouldn't be doing business with Huawei.

Ross' comments sent shares of US computer chip makers higher.

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The Chinese company is facing problems in New Zealand, trying to convince officials its equipment is not a security risk. Source: 1 NEWS

But Ross also announced that the US was adding 46 Huawei affiliates to the list of 69 already affected by sanctions. He also said the US has granted no special licenses that would let any US supplier sell technology to Huawei not affected by the limited reprieve.

Huawei released a statement saying today's extension "does not change the fact that Huawei has been treated unjustly." The company said the extension "won't have a substantial impact on Huawei's business either way."

Huawei is China's biggest phone maker, and sales to the company account for a significant portion of revenues for some US suppliers.

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Andrew Bowater said Huawei’s competitors were not being subjected to the same levels of scrutiny. Source: 1 NEWS

Ross said the main aim of today's announcement is to give the US 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.

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The White House blacklisted the company in May over national security issues. Source: Breakfast