• The U.S. government is holding off on its decision on a ruling that could affect Huawei's business again
  • The ruling allows the government to exercise more control on some of Huawei's products
  • Huawei has yet to recover from the Entity List ban

The U.S. government's plan to extend its control over Huawei sales has recently been put on hold. Pressure on Chinese tech company Huawei could be alleviated with this move. However, Huawei is still not off the hook after these rulings.

The new ruling that’ll extend the U.S. government’s control on Huawei’s products has been put on hold, according to a report from Reuters. The ruling will reportedly provide more control to the U.S. government over goods made from American resources. Prior to the ban, many of Huawei’s products were made from parts coming from the country.

As of now, Huawei’s products are still made from resources that came from its U.S. partners prior to the ban. Huawei’s inclusion in the Entity List has now prevented the Chinese company from working with many of its partners. What remains is only the reprieve which allows the company and its U.S. partners to start preparing to work independently from each other.

After the announcement of the ban, the U.S. government has continued to enforce it, not only within its own territory, but also among its allies. Throughout 2019, Huawei had to contest most of its deals with some form of intervention from the U.S. government.

With this delay on the new ruling, Huawei can breathe easier for a little while. However, none of Huawei’s current bans and pressure has been totally lifted as of yet.

On the other end, many of Huawei’s remaining partners in the U.S. are noting that the company may simply look overseas to recoup its losses after leaving its partners in the country. Huawei has been actively seeking new partners outside the U.S. but has yet to fully succeed and reestablish itself with stronger partners.

Huawei chief financial officer Meng Wanzhou at her extradition hearing in Vancouver
Huawei chief financial officer Meng Wanzhou at her extradition hearing in Vancouver Jane Wolsak / Don MacKinnon