The latest development in the Huawei trade ban saga comes directly from the ongoing G20 summit wherein US President Donald Trump announced that “U.S. companies can sell their equipment to Huawei”. This is a major reprieve to Huawei, which was suffering from the political tensions between USA and China.
“U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it. 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.”
Donald Trump, President of the USA, and Xi Jinping, President of China, agreed to a cease-fire in the trade battle between the two countries. As negotiations are expected to resume on this political topic, Mr. Trump granted Huawei some relief by allowing US-based companies to resume sales. The US administration is now expected to hold meetings on how to deal with Huawei and its presence on the “entity list”, as the relief does not explicitly remove Huawei from the said list. The announcement made during the summit does not go into any particular details with the scope of relief, so further details are awaited on this end.
Nonetheless, this announcement comes as a major relief for all stakeholders. After the first announcement of the executive order, US-based companies like Google, Qualcomm, ARM and many others had suspended business with Huawei, only to resume it in a limited form after the Chinese company was granted a “temporary general license”. Because of the uncertainty around Huawei and its smartphones, the company was expecting its international smartphone sales to drop by as much as 40-60%. Devices like the Honor 20 Pro were one of the first victims of the trade ban, as the availability of the phone was no longer certain. Now, with this relief in hand, we expect companies to resume their business operations with Huawei and Honor.