During the G20 summit, the President of US Trump made a very important statement on the US-Huawei issue. The statement is a surprise to many as he hit the US companies might continue selling to China.
If you have not been following this saga lets give you a quick review. Months ago Trump bans American companies from selling technology to Huawei. This has caused a set back to the two parties involved, as Huawei cannot get what it needs from the US, Apple also has something to lose in China. In case you don’t know, China is one of the countries that purchase high numbers of iPhones.
The extreme backlash is followed by bargaining, delays and legal loopholes to keep a delicate economic balance between the two countries.
While we hope that the two countries resolve their differences in due time. Let me state the point Trump made at the June 2019 G20 summit.
US companies will continue to sell to Huawei
To quote Trump on this one:
These are American companies producing products. This is complex … highly scientific. We are the only one with the technology. I have agreed to allow them to continue selling the products … I like our companies selling things to others … very complex things. These are not things easy to make … our companies were very upset we are allowing them. So if it is not a national security issue, we are allowing them to sell.
The US President finally grasp the gravity of the situation on the ground and the benefit of cooperation between China and US on patents and technology.
Also, Trump mentioned that further deliberations on a trade agreement between the US and Huawei will be conducted later. Most likely the deliberation might be on Tuesday, but until then let’s hope for the best.
We are leaving Huawei towards the end. We are going to see where we go with the trade agreement.
Huawei might be taken off the “entity list” entirely
The US taking Huawei off the entity list will mean a lot. We have been hearing so many things on this lately. But this will have to be backed up by a US-Huawei trade deal. Taking Huawei off the entity list will mean no trade restriction to Huawei.
Trump will be discussing this with the Commerce Department Today or on Tuesday. The next step might be to negotiate with China which will be a meeting with President Xi Jinping
Before the summit, a meeting held between the two leaders but n official agreement was released. Having an official agreement will mean a lot since Trump mentions the ZTE ban and how it was solved.
I took ZTE off if you remember. That was a personal deal. President Xi called me and asked me for a personal favor, which I considered very important. His is a leader of a major country… And there are 85,000 employees who were out of business. And he agreed to pay US$1.2 billion penalties and other things including management changes.
The US won’t put new tariffs on China imports at this time
Trump has previously threatened to impose a whopping tariff of 300 billion on Chinese product. This is another issue that should be discussed between Trump and Junping.