The trade ban that the Donald Trump administration imposed on Huawei amid tensions between the United States and China may be lifted soon.
On the sidelines of the G20 summit in Japan, U.S. President Trump told reporters that he and Chinese President Xi Jinping have agreed on a ceasefire to the trade war that has been slowing the global economy and stalling Huawei’s momentum for its smartphone and 5G business.
Trump also said he would not impose an additional $325 billion on Chinese imports, and confirmed that a deal could be made with China depending on how negotiations unfold.
But the biggest winner of today may be Huawei, even though Trump stated that he will save discussions about the embattled Chinese tech giant until the “very end.”
Trump announced that American companies like Google could continue to sell to Huawei
The U.S. president announced that American companies like Google could continue to sell to Huawei, which was placed on the US Entity List last month over security and foreign-policy concerns.
The action effectively barred U.S. companies from trading with Huawei, which resulted in Google pulling its Android license and services from the second-biggest Android vendor. It had been expected to cost Huawei about $30 billion in revenue this year.
Listen to what U.S. President Donald Trump said (via CNN)
“We sell to Huawei a tremendous amount of product that goes into the various things that they make. That’s okay, we’ll keep selling that product,” Trump said.
As to why Trump has agreed to the the blacklist concession in favor of the Chinese, it seems that U.S. firms were a big part of the decision. “The [U.S.] companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever was potentially happening with respect to Huawei.”
‘The [U.S.] companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever was potentially happening with respect to Huawei’
In a statement to China’s official state news agency Xinhua, President Xi was quoted to have said: “China and the U.S. have highly integrated interests and extensive cooperation areas, and they should not fall into [the] so-called traps of conflict and confrontation.”
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