Huawei’s US trade issues are not over
The president of the United States, Trump, has given a signal over Huawei’s sales ban. It could be easing over the weekend, but the giant Chinese company is not out of America as uncertainty clouds the compromise. Recently, reports from the G20 summit stated that Trump had said: “ US companies can sell their equipment to Huawei”.
In this season, there were signals that their business was not going back to normal for Huawei. Trump explained his statement by reviewing out that the sales ban applied only to equipment where there’s no great national security issue with it. Productivity to retain product might fall under security control were unsuccessful.
Though it seems the US governments plan is to keep Huawei and its suppliers on a tight leash. It should rather allow the Chinese firm to deal as it pleases with American companies. It still depends on the US commerce department whether to give prior approval.
“This is not a general amnesty, if you will, “White House economic advisor Larry Kudlow told Fox News Sunday confirming that the US trade blacklist was still in force. “ Huawei will remain on the so-called entity list where there are serious export controls and in national security inferences or suggestions there won’t be any licenses”.
To deal with that, the Commerce Department will have to issue licenses to US companies who want to do business with Huawei. They will be allowed to supply the Chinese firm, as long as it can show sales that will not have a negative impact on national security.
According to Trump, the decision to soften the administration’s shut down on Huawei was alerted by American tech firms. They had proved to be a potential impact of not being able to sell to the Chinese electronics behemoth and push for a settlement of the ban or at least greater clarity around it. Huawei has been on and off the membership of several US-led trade bodies while it has been on the entity list, including the groups that oversee memory cards and various wireless standards.
At this moment, it’s still not clear whether Trump’s new approach will resolve the concerns of rural wireless operators, who have warned that removing and replacing Huawei equipment could be hugely expensive. An estimate by the Rural Wireless Association which represents a number of smaller carriers pegged the cost of doing that at anything up to $1 billion earlier in the year.
Can U.S trade issues affect Huawei? What will be the state of the Huawei firm if they are ban in American?? Does this involve America Chinese competition?
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