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| Trump Allows Huawei to Buy From U.S. Suppliers |
Trump's eased the restrictions on Huawei after his talks with China's President Xi Jinping at the said conference in Japan.
“U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it,” Trump said.
“I said that’s O.K., that we will keep selling that product, these are American companies that make these products. That’s very complex, by the way. I’ve agreed to allow them to continue to sell that product so that American companies will continue,” Trump added.
However, the U.S. President did not clearly mention as to what extent the possible trade agreement with Huawei is. Also, it is not really clear how long the exemption would last, and whether Huawei will be removed from the Entity List or not. Trump said that he will meet with his advisors next week to determine how to proceed.
For those uninitiated, the trade ban happened last May 20, wherein U.S. companies with the likes of Google, Intel, and Qualcomm turned their back on Huawei, which put the Chinese companies into an uncertain business situation, especially in the smartphone and telecom segments. The said ban leads to several speculations, including the release of Huawei's very own mobile operating system, and even the acceptance of Ren Zhengfei, founder and CEO of Huawei, that the company's revenue will be greatly affected.
This is actually a great positive development not only for Huawei, but also to consumers that are using Huawei products and devices. However, until everything is curved to stone, we should not fully rejoice, as Trump specifically points out "equipment with no great national security problem." Nonetheless, this is indeed good news!
Source: TechCentral