Chinese tech giant, Huawei, can breathe better now that the U.S. is allowing Americans to sell their products to the previously banned company following the anticipated meeting between U.S. and China patriarchs in the recently held G-20 Meeting in Tokyo earlier.
American president Donald Trump and Chinese leader Xi Jinping, in a closely, watched sit down with each other earlier have agreed for a truce and cease-fire over the long-disputed trade wars between the two superpowers.
“U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it. I said that’s O.K., that we will keep selling that product, these are American companies that make these products,” Donald Trump said after his meeting with the Chinese president. “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.”
While the relief is what Huawei has been looking forward to from the G-20 meeting today, it seems like it could be a temporary relief as negotiations regarding the matter is bound to continue, and the ad hoc decision of Trump may still be overturned at some point of the negotiations. Nonetheless, it’s time for the Chinese smartphone superpower to breathe better.
Washington officials are reportedly holding meetings on how they will implement the new orders from Trump. However, special attention has to be given on how to deal with Huawei and its presence on the “entity list,” as the relief does not explicitly remove Huawei from the said list.
No further details on the relief have been laid down during Trump’s announcement in the summit, and it is expected to roll out as soon as coordination with the relevant agency has been done.
Previously, the United States imposed hefty tariffs on Chinese products that later escalated into a full-blown trade war between the two economic powerhouses. The United States has also been banning Chinese tech companies from doing business with American companies and listing in the US Stock Exchange.
Furthermore, and probably the most controversial and talked about decision of Washington, Trump announced an executive order that puts Huawei in the “entity list,” a list of companies, organizations, and individuals who the US is considering as a threat to national security.
Previously, Trump’s administration has launched a global campaign to discredit Huawei and to prevent its allies from using the company’s 5G equipment citing that the Chinese authoritarian government is using the Huawei in its efforts on espionage and economic sabotage.
The inclusion of Huawei to the ‘entity list’ effectively banned U.S. companies from conducting business with the smartphone manufacturer. Following the ban, Google, among other tech giants in the U.S., revoked the Android license of Huawei which sparked global confusion and outrage, prompting the Chinese government to hit back with stricter regulations against American tech companies.
The retaliation from China was justified by officials as a way “to improve the security and controllability of key information infrastructure and maintain national security,” companies purchasing “network products and services that affect or may affect national security” will now need to evaluate the national security risk before doing so.
“We don’t want to see another wall, and we don’t want to go through another painful experience,” Hu Houkun, the rotating chairman of Huawei, said during a speech near the site of the Berlin Wall, also on Friday. “We don’t want to build a new wall in terms of trade, and we don’t want to build a new wall in terms of technology either. We need an integrated global ecosystem which can help us to promote faster technological innovation and stronger economic growth.”
Meanwhile, Huawei has been very stern in denying Washington’s allegations against them. In a recent live-streamed panel discussion with Huawei’s CEO, Ren Zhengfei, the company’s patriarch said that they aim to serve the “good of humanity” and said that they would be working to improve the trustworthiness of their technology.