We recently told you that the presidents of the US and China, Donald Trump and Xi Jinping, respectively, had come to a truce for the trade war that swept both countries. As a result, Trump told the media Saturday morning that “US companies can sell their equipment to Huawei, we’re talking about equipment where there is no national security problem.” Last month, Huawei was included in the list of entities of the US Department of Commerce preventing it from buying supplies from the US companies. Because of the ban, Huawei was about to be forced to use its Hongmeng operating system and the App Gallery showcase for the next Mate 30 series. But Trump’s comments put an end to all Huawei’s concerns, right? Mistaken.
The president of the National Economic Council, Larry Kudlow, said today on “Fox News Sunday” that the US-based technology that Huawei can now get must be for components and software available worldwide. Kudlow said that Trump’s comments on Huawei “are not a general amnesty” and that the agreement “is not the last word”. He added that “all that will happen is that the Department of Commerce will grant some additional licenses in case of general availability” for the parts Huawei needs. For example, the White House’s economic consultant said that the chips sold by US companies are available through suppliers in other countries.
According to Kudlow, Huawei Remains On The Entity List
So, what about Google? While Android is an open source operating system, the software version of Google Play services must have a Huawei license to maintain access to the most popular Google apps and the Google Play Store and is not available in other countries. While there are OS available from other countries and reportedly Huawei was looking at one from Russia, it will depend on how the Trump administration interprets its own rules. We could hear Google at any moment, today or tomorrow, at the latest, considering the president’s statement and Kudlow’s clarification. Other companies can also announce if they intend to start doing business with the manufacturer again.
In the NBC weekly program “Meet the Press”, US Senator Lindsey Graham stated that the Senate will not be satisfied if too many concessions are made to Huawei. The company is considered a threat to US national security because the Chinese communist government can demand that it be spied on its behalf. As a result, the US lawmakers doubt that Huawei devices contain a backdoor that can be used as a channel to send information to Beijing. Huawei has denied these allegations. The US has warned the Allies not to allow the use of Huawei network equipment in their 5G networks for the same reason. While countries like Germany refuse to ban Huawei, and the UK is discussing the issue, Japan, New Zealand and Australia have heard the warning from the US.
Kudlow noted that, despite Trump’s comments, Huawei remains on the entity list and we can imagine that the company is probably confused like most of the US supply chain right now. The confusion about what to do on Huawei can be found in the comments of the president last month on why the company name was included in the list. “Huawei is something very dangerous … from a military point of view, it is very dangerous,” the president said, “so it is possible that Huawei is included in some sort of commercial agreement. Imagine that Huawei is eventually included in some way, part of a trade agreement. “And on Saturday morning, Trump said that China would buy huge quantities of agricultural products from the US farmers. And this led President Trump and President Jinping to announce a truce.
Last year a similar situation occurred when ZTE, another Chinese manufacturer of phones and network equipment considered a threat to national security, was prohibited from importing parts of the US and software for not respecting some sanctions of the Department of Commerce. ZTE had been caught selling goods and services to Iran and North Korea in violation of the US and international economic sanctions. Once it was the fourth largest smartphone company in the US, ZTE was close to having to shut down before Trump ordered the Commerce Department to reach an agreement with the company. ZTE was forced to pay a $1,000 million fine and deposited $400 million in escrow to cover any possible future breach. It also had to agree to be supervised by a team from the US and replace your board and your executive suite.
President Trump said he is allowing Huawei to buy supplies from the US again at the request of the US technology industry, although some House and Senate Republicans are not in favor of this move.
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