After the US Department of Commerce extended the ban on Huawei, more than 130 US companies are applying for export exemptions for Huawei’s goods. This “temporary license” will soon expire and there are reports that the US might punish its allies for using Huawei’s 5G equipment. Deputy Assistant Secretary of State for Cyber and International Communications and Information Policy, Rob Stryer, said that the “temporary license” will not be effective forever. He pointed out that the purpose of these permits is to “provide some immediate relief to prevent immediate market damage”.
Furthermore, Stryer said that the Trump administration is considering penalizing allies who are using Huawei’s 5G network equipment. The US has been warning its allies not to use Huawei’s equipment. As of now, only a few countries are obeying the warning. Many countries and regions believe that they have their own rules of engagement and this does not rely on what the US thinks.
The deputy assistant secretary of state threatened that if allies allowed their 5G network to include Huawei’s equipment, the US might cut off the intelligence-sharing agreement or punish them in some way. Many countries, especially the smaller nations may prefer to use Huawei’s 5G because it is cheaper and readily available. The likes of Nokia and Ericsson are comparatively more expensive and this will force some regions to Huawei.