From the start, Huawei has been at the forefront of the US-China trade war. The Shenzhen based tech giant got involved in a controversy, where the company was accused of illegally selling products to sanctioned countries. The US government never went to court against them and banned them from trading with American companies.
Huawei was banned from trading in May but received a 90-day reprieve to trade with its US-based partners. The reprieve is ending today, which means, from now on the company is not allowed to trade with any of the US-based companies.
However, according to a report from Reuters, the US Department of Commerce is going to extend the reprieve for three more months, hoping that the US and China will reach a decision in the meantime.
Out of the $80 million that Huawei spends on purchasing components for its products, about $11 million go to US-based companies. This is why, according to Commerce Secretary Wilbur Ross, around 50 companies have applied for special licenses to trade with Huawei.
Presidents of the two superpowers, Donald Trump and Xi Jinping, are expected to meet later this week to discuss the future of this trade ban.