Economy

Huawei’s United States trade problems aren’t over

Huawei’s United States trade problems aren’t over

San Francisco: With the US President Donald Trump providing reprieve to Huawei, less than a month after blacklisting the Chinese telecom giant, American tech titan Google can now work with it and continue to sell its Android license to the smartphone maker.

At the G20 summit in Osaka, Japan, the United States government announced that American companies will now be allowed to do business with Huawei again.

The much anticipated Trump/Xi meeting in Osaka, Japan, on Saturday went largely as we expected, resulting in a truce on the trade war, with Trump describing China as a "strategic partner".

Huawei, the world's biggest telecommunications equipment maker and No.2 smartphone maker, denies its products pose a security threat and has sought to fight back in USA courts since Washington put it on an export blacklist last month. China's promise, according to the USA, to import more agricultural products from the States while the U.S. postpones new tariff hikes, is not very different than what was already agreed upon in December a year ago and proved, in the end, to be insufficient for a deal.

"This might be good news for some US suppliers and Huawei, but it still means uncertainty in the medium run for the supply chain", Mueller said. He also mentioned that USA companies can sell products to Huawei if those products are not critical to national security; the definition of "critical to national security" is very much up to U.S. interpretation. For its part, China has agreed to start buying US farm products and other products that it had stopped purchasing because of the tariffs, Trump said Saturday.

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China Daily, an English-language daily Beijing often uses to relay messages, agreed with Kudlow's assessment that a trade agreement is not close.

The U.S. Treasury Department under Trump has refrained from accusing China of artificially manipulating its currency.

"As Trump did with ZTE, it appears he's willing to accept a fistful of dollars while trading away our security", U.S.

"We will fully address Huawei not until the end of the trade talks", Kudlow added. The president promised there would be no additional tariffs on Chinese imports for now - a key concern among investors. Kudlow said the security concerns over Huawei's equipment would definitely be part of the renewed trade negotiations with China, adding that the agreement reached this weekend is "not the last word" on the matter. It is quite evident that the USA president used the Huawei situation to his leverage to get the Chinese regime to the negotiation table.