Trump allows US companies to sell products to Huawei
US President Donald Trump has allowed US companies to sell their products to Huawei. Trump states that US is allowing after considering that it's not an issue of national security.
- Trump administration is considering lifting the trade ban on Huawei.
- All US companies will be allowed to sell products to Huawei after the trade agreement happens.
- Huawei will be able to use Google's Android OS and ARM-designed chipsets.
After the US issued a ban on Huawei, many US companies were unable to do any business with Huawei, which at the moment is the second largest smartphone manufacturer in the world. This also posed risks of incurring losses for these US companies. Therefore, the US government has been pressed to reconsider the trade ban with Huawei. And as expected, the Trump administration seems to have figured out a solution to the problem.
Trump said at a press conference that he’s only allowing equipment trade in areas where there’s no security risk to the country:
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.
For reference, as Android Authority noted, Huawei spent about $11 billion on US-based suppliers in 2018; that included chipsets from the likes of Qualcomm, as well as software from Microsoft.
The trade agreement hasn't been undertaken yet but it will happen soon. Therefore, the situation stands as - the US is ready to consider lifting the trade ban with Huawei and the trade talks will happen soon. As of now, the ban still stands on Huawei.
With the ban lifted, it remains to be seen whether Huawei will stick to Android and use existing US technologies, or develop its own processor architectures as well as stress on its own HongMeng OS.
It's not clear at the moment if Google, Qualcomm, Intel, and other Companies will resume trading with the Chinese Tech Giant. We've Contacted them to learn more,and we'll update the story accordingly.
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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.
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