Huawei was put on the “Entity List” during this whole US-China trade war situation. But it does look like things are going to change soon and Huawei might be removed from the “Entity List” soon. That can be said as Trump made a few important announcements regarding US-Huawei situation a the G20 summit. One major thing which was announced is that Huawei can continue to do business with US companies.
It seemed obvious as both the countries would’ve faced setbacks if this trade war continued. No to say that it has completely ended, but it might end soon. Here are the three major announcements made at the G20 summit which points towards the same.
US companies can continue to sell to Huawei
Here’s exactly what Trump said:
“These are American companies producing the 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, but we are allowing them. So if it is not national security issue, we are allowing them to sell.”
It seems like now even Trump finally knows what will happen if they stop doing business with Huawei/China. There can be several negative impacts on both the sides, especially regarding the patents and technology.
However, this is not the final trade agreement or license to Huawei to conduct business with US companies. Trump did announce that further deliberations on the trade agreement with Huawei will be conducted later – possibly, this Tuesday. Anyways, it should be in the favour of both the parties as Trump has already announced this. But nothing can be said for sure until it’s officially announced.
Huawei might get removed from the “Entity List” completely
It is expected that Huawei might be completely taken off the “Entity List”, but it would have to be backed up by the US-Huawei trade deals. Trump did say that he’ll discuss all this with the Commerce Department, either tomorrow or on Tuesday. And later, he might directly negotiate with China and the president, Xi Jinping.
Even a small meeting took place between them at the G20 Summit today, but the parties were unable to negotiate to any official agreement. Also, amidst all this, Trump also mentioned the ZTE US ban which took place a while ago and the way it got resolved.
Here’s exactly what he said:
“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.”
This does make it look like an official agreement might be reached sooner rather than later.
US won’t put any new import tariffs on China – as of now
Earlier, Trump had threatened to impose a whopping $300 billion of tariffs on good imported from China. But if everything goes well between the two parties, there won’t be any such tariff imposed on any side.
As of now, Trump has agreed not to impose any such tariffs on importing goods from China. But even this needs to be backed up by reaching a trade deal else there are chances of things going wrong way.
I would love for all these things to get resoled at the earliest. Huawei is a huge competitor in the smartphone market and such competition is required to get better products. Whichever way this trade war goes, I’ll try to cover it here and keep you all updated about the same.
