Huawei is in troubled water for months. All major US had cut ties with Huawei. Finally, US president Donald Trump has announced that US companies will once again be allowed to sell their products to Huawei.
This comes in light at G20 Summit in Osaka. Where US President Donald Trump and Chinese President Xi Jinping talked over recent trade relation between both countries. Trump said “U.S. companies can sell their equipment to Huawei,” without going into detail. “We’re talking about equipment where there’s no great national security problem with it,” Trump continued.
White House economic advisor Larry Kudlow has told CNBC that Huawei remains on the U.S. Entity List, but said the Commerce Department intends to grant more licenses to U.S. companies to allow them to do business with Huawei. The economic advisor also explained why President Trump had made the decision given the national security concerns Huawei is said to represent. Kudlow said this wasn’t a “general amnesty” and that trading with Huawei was only being permitted in areas where no security risk was present.
President Trump has said that he had come to an agreement with the Chinese president that the US will not raise tariffs on Chinese products, in return for China buying more agricultural products from the United States. “We had a very good meeting with President Xi of China, excellent, I would say excellent, as good as it was going to be,” Trump said.
Although the ban is fully lifted next week, it will still effect Huawei. The company said it’s 2019 revenue will be $30 billion below estimates due to the disruption caused by the ban. The US companies can start the business with Huawei soon. Before the ban went into effect in mid-May, the company reportedly stockpiled critical components that would allow it to continue to operate for up to three months.
Although the US restriction is not lifted fully, but Huawei is in a better position than earlier. Atleast now Huawei can do business with the US company.