President Trump indicated at the G20 summit that Huawei may again cooperate with companies from the United States. This means that the ban that was entered has now largely been lifted. Huawei somehow does not appear to be a security threat for the USA.
Huawei Trade Ban Lifted
President Trump of the United States made an important announcement during the G20 summit in Osaka. He mentioned that companies from the United States may trade with Huawei again. According to Trump, we are talking about equipment that does not entail a ‘national security risk’.
From this, you can deduce that network equipment is still on a blacklist, but things like Android software or Qualcomm chipsets can be purchased by Huawei. This information comes from Reuters, among others.
An earlier report even stated that in 2018 Huawei spent a total of $11 billion on Intel (for the laptops from Huawei) and Qualcomm chips. The imposed ban, therefore, had a major effect on these large American companies and, partly due to this pressure, Trump has largely canceled the ban. It seems that this decision is temporary.
Huawei can still be found on the so-called ‘entity list’ that lists companies with which American companies cannot trade. A formal decision has not yet been made or communicated to the outside world. So for now we have to make do with the word of President Trump. The ban on trade with Huawei is also related to the current trade war between the United States and China.
Recent negotiations show that the US will not apply any new import duties on products from China for the time being. Trump had a personal consultation about this with President Xi of China.
It is still to be seen how quickly Huawei can now do normal business. Earlier it became clear that Huawei’s sales decreased because of the ban but that they recovered afterward. There was also a lack of clarity about which smartphones would get an update to Android Q and whether Android R was still possible on current Huawei smartphones. Hopefully, the Chinese company can now focus on their normal course of business.