Huawei sales ban reprieve covers only 'widely available' products

Ann Santiago
July 2, 2019

There was a lot of controversy over the weekend after President Donald Trump made a statement at the G20 Summit regarding Huawei's ban, putting it on hold, and how he allowed US companies to continue to sell tech to the Chinese giant.

Kudlow's comments came after President Donald Trump and China's Xi Jinping agreed on Saturday to a truce in their trade war, and Washington pledged to hold off on new tariffs while they negotiate.

Once again, Presidents Donald Trump and Xi Jinping have hit the reset button in trade talks between the world's two biggest economies, at least delaying an escalation in tension between the USA and China that had financial markets on edge and cast a cloud over the global economy. China and the United States are now in talks concerning trade, with President Trump himself stating that he would not increase tariffs on China as long as the two countries are negotiating.

Trump's remarks apparently contradict the Commerce Department ban, and he refused to confirm that Huawei would be formally removed from the blacklist. China's promise, according to the USA, to import more agricultural products from the States while the U.S. postpones new tariff hikes, is not very different than what was already agreed upon in December a year ago and proved, in the end, to be insufficient for a deal. This move meant that Huawei couldn't even use its own Hisilicon Kirin chips because these were built upon ARM's RISC (Reduced Instruction Set Computing) architecture. "US companies can sell their equipment to Huawei", he told reporters, providing that equipment poses no "great national emergency problem".

Tech commentator Paul Brislen said this is significant, given the US-led, global disapproval Huawei was facing.

The administration paid more than $8.5 billion in cash to farmers and ranchers to cushion the impact of trade war on their 2018 production.


However, given the current climate, they may be more receptive to a domestic alternative given massive demand in tech powering the potential of huge valuations as well as not wanting to suffer from Trump's anti-China whims.

The president has repeatedly insisted that China bears the cost of the tariffs he's imposed on its exports to the US, rejecting the consensus of economists that the taxes are paid by American companies and consumers in the form of higher prices.

The U.S. Treasury Department under Trump has refrained from accusing China of artificially manipulating its currency.

Sen. John Barrasso, R-Wyo., described the Chinese company as a clear threat to USA national security.

The Journal noted that the decision to pivot on Huawei has already attracted criticism from Democrats and some Republicans in Congress, with Senate Minority Leader Chuck Schumer saying it would "dramatically undercut our ability to change China's unfair trades practices" and Senator Marco Rubio threatening to "get those restrictions put back in place through legislation".

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