Trump Gives US Companies Go-Ahead to Continue Selling to Huawei
At the recently concluded G20 summit in Japan, the US-Huawei saga took a new turn as Donald Trump made a handful of very important announcements regarding the trade crisis. In late January, the US banned the tech company on a 23-count indictment bordering on alleged intellectual property theft, obstruction of justice as well as fraud related to the OEM’s alleged evasion of American sanctions against Iran. The embattled phone maker, which is currently the world’s leading telecom supplier and second largest phone manufacturer (after Samsung), is a pariah in a lot of countries, including America.
However, aside from all the much talked about complex politico-economic concerns of the ban, the situation is bringing about key losses & setbacks on all sides. This is what causes the intense backlash, which gave way to bargaining and delays and, in recent times, legal loopholes with the single aim of keeping the delicate economic balance between the United States and China.
The situations of things might change for the better — not overly hopeful, though — considering the main points raised by Trump at the 2019 G20 summit. We bring you the highlights of his announcements.
According to Trump:
“These are American companies producing the products. This is complex … highly scientific. We are the only one with the technology. I have agreed to allow them to continue selling the products … I like our companies selling things to others … very complex things. These are not things easy to make … our companies were very upset, but we are allowing them. So if it is not national security issue, we are allowing them to sell.”
The president, evidently, has finally managed to come to terms with the full gravity of the precarious situation and the depth of the sustained cooperation between the United States and China, particularly as regards patents & technology.
Having said that, Trump stated, however, that more deliberations will be done later on a possible trade agreement with the Chinese company. So until then, nothing is actually certain.
Trump added: “We are leaving Huawei towards the end. We are going to see what we go with the trade agreement.”
Huawei Complete Removal from the “Entity List” Possible
It is likely that Huawei will be taken off the “entity list”, as we’ve been hearing so much on in recent times, and that would mean removing the controversial trade restrictions. But that would surely need to be backed-up by trade deal between both warring factions (the US and Huawei). Trump stated he would discuss all of this with the Commerce Department very soon. Expectedly, the next step would be to hold negotiation talks with China’s Xi Jinping.
As a matter of fact, a meeting between both leaders has already been held during the summit; it didn’t, however, lead to an official agreement. Particularly so, since Donald Trump did not hesitate to cite the recent ZTE US ban as a reference and the way resolution was reached. Speaking on the ZTE ban resolution, Trump averred:
“I took ZTE off, if you remember. That was a personal deal. President Xi called me and asked me for a personal favor, which I considered very important. His is a leader of a major country… And there are 85,000 employees who were out of business. And he agreed to pay US$1.2 billion penalties and other things including management changes.”
Trump Also Said No New US Tariffs Will Be Put on China Imports This Time Around …
This announcement is also another crucial economic aspect that could depend on the smooth negotiations between the 2 presidents. As regards previous info, the tariffs in question are worth a humongous $300 billion that Mr. Trump had threatened will be imposed on goods that are imported from China.
This issue is also another aspect of the recent economic turmoil between the 2 countries that has come under severe backlash. Some of the key issues raised have to do with taxes and transfer of increased costs, which may have an impact on both customers and users more than any other party.
Huawei’s Founder Reacts to Trump Easing the US Ban
Meanwhile, Huawei’s founder, Ren Zhengfei, has stated that Trump’s move to relax a ban on the equipment of the Chinese company won’t have “much impact” on its business because it is already adjusting to a new tech era of American hostility.
Mr. Ren, responding to Trump’s declaration that US companies will continue selling the chips, software, & other inputs Huawei needs to the OEM, stated:
“President Trump’s statements are good for American companies. Huawei is also willing to continue to buy products from American companies. But we don’t see much impact on what we are currently doing. We will still focus on doing our own job right.”