We all know that in mid-May, the US President Donald Trump banned the Chinese Giant Tech Huawei from doing any business with the US firms as well as American companies were also barred from selling to Huawei without US Government license.
However, this Saturday the US president declared in a news conference that he’ll allow US firms to do business with Huawei. He will allow the selling of high-tech equipment to Huawei technologies.CO. This move came after the US President met Chinese President Xi Jinping at the G20 summit which is being held in Japan.
Following are the words of President Donald Trump:
“US Companies can sell their equipment to Huawei. We are talking about the equipment where there is no great national security threat with it. I said they will keep selling that product because these are American companies that make these products. This is very complex by the way, I have agreed to allow them to continue to sell their products so that American firms will continue.”
However in the saying President Trump has only allowed US firms to sell the equipment to Huawei but still, the main issue remains unsolved. In the news conference, Trump emphasizes that the trade was only being allowed to the equipment that did not possess any threat to US security.
It is still unclear at the moment if Google, Qualcomm, Intel and other companies will resume trade or not. However, this situation will be cleared in the upcoming days. It will depend on how talks between the two countries will carry out. This new announcement shows that the two countries are going to take a U-turn.
Why did president Trump allow Huawei to do Business with US Companies?
According to the BBC, Trump met President Xi Jinping and claimed to have a good time with him. He also said that we discussed a lot of things. He also said that we are right back on the track and we’ll see what happens.
However, WSJ already reported that the Chinese leader is trying to make a risky trade deal to end the years-long trade spat between China and the US, at the G20 summit. He was also asking US President Donald Trump to end the ban on Huawei.
The Chinese leader was there to ask the US President to lift the Huawei ban as well as the punitive tariffs on the country as a precondition before signing a possible trade deal.
However, some reports claimed that after the cease-fire trade war, the US also agreed to put off the additional tariffs on Chinese goods. In 2018 Trump initiated all-out trade war on China and placed a tariff of billions of dollars on Chinese goods. Besides this in this trade deal, China will also start to buy a large number of American farm products. The US trade war with Huawei also affected the American firms as most of the Chinese nation stopped buying American products.
Huawei has not reacted yet
Indeed this news has come forward as a relief. But yet this time Huawei has not released any official statement on this matter.