BUSINESS

No, Huawei is not safe from the US ban there’s a catch


Over the weekend US President Donald Trump had a meeting at the G-20 Summit with Chinese President Xi. The meeting bore some fruits to the ongoing Chinese USA trade war by easing the tension a bit.

Huawei, in return, was the principal beneficiary when Trump announced that the US companies can now trade freely with Huawei. However, this trade is only limited to the US tech companies supplying tech products to Huawei. A move that Trump made to save American tech companies from accumulating losses due to the supply ban.

The other security concerns that the US government had against Huawei’s telco equipment still stand. In other words, the supply of Huawei’s telco equipment in the US is still prohibited.

Trump’s decision has been met with critics from other Republican officials over the weekend, terming it as a “catastrophic mistakes.”

In a press interview, the US National Economic Council chairman Larry Kudlow stated “the US commerce department will grant “some additional licenses” to chip companies whose products are widely available in other countries.

“We will fully address Huawei, not until the end of the trade talks.” – White House Official

“This not a general amnesty … The national security concerns will remain paramount,” he stated. From Kudlow’s interview, it turns out that Trump’s decision to partially lift the Huawei ban had to be made for the two countries to reopen their stalled trade negotiations that have been going on for the last two years.

In short, the trade ban is lifted partially, but the final decision is still underway.

“We will fully address Huawei, not until the end of the trade talks… that will deal with much larger issues concerning the long term future with Huawei.” Kudlow stated.

Besides, Trump did not specify which US tech companies will be allowed to supply to Huawei.

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Alvin Wanjala

Alvin Wanjala has been writing about technology for over 2 years. He writes about different topics in the consumer tech space. He loves streaming music, programming, and gaming during downtimes.

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