Finally, President Trump allows U.S. companies to do business with Huawei. Let’s find out what these American companies can sell to Huawei.
U.S companies to do business with Huawei
After sabotaging and calling Huawei a big threat to the US government and national security, the Trump administration is now letting US enterprises do business with Huawei.
During the G20 summit in Osaka, Trump officially said: “U.S. companies can sell their equipment to Huawei,”. “We’re talking about equipment where there’s no great national security problem with it,” POTUS said.
In general, this does not mean Huawei will get everything it needs. However, the Chinese tech giant will be able to get tech components such as Qualcomm processors and Google’s Android OS.
Huawei will get tech components from U.S. companies
“I said that’s O.K., that we will keep selling that product, these are American companies that make these products. 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,” If you look at Huawei’s 2018 expenses, you will find out that the Chinese tech giant spent up to $11 billion on chips made by Intel, Qualcomm, and Micron alone.
In fact, the Wall Street Journal believes that China is definitely going to respect condition for any trade agreement with the U.S.
Huawei is still on the Entity List
do not forget, Huawei is still on the “Entity List”. This means that it is one of the companies that the U.S Department of Commerce does not want to allow to do business will all American entities.
Most importantly, the trade war discussion between China and the U.S.A are ongoing. On top of that, president Trump still wants people to consider Huawei as a security risk for the U.S. government.
To convince and support his argument, Donald Trump said: “Huawei is very much in play in terms of our country and in terms of intelligence and the intelligence community — we know a lot about Huawei — but I don’t want to mention that right now. I just think it’s inappropriate. We’re not making it other than what I told you… We’re going to save that for later.”