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Trump reversed course on Huawei

2019-07-01 15:24 by


President Trump made a "U-turn" about his decision to block Huawei from doing business in the U.S. by announcing Saturday that U.S. suppliers will be allowed to sell components to Huawei. The news comes as he and Xi Jinping agreed a trade war truce while at the G20 summit in Osaka, Japan on Friday.

"U.S. companies can sell their equipment to Huawei," Trump said at a news conference. "We're talking about equipment where there's no great national security problem with it."

As yet it's not clear exactly what the change in policy will mean: Huawei remains on the Commerce Department's Entities List, which means any deals will need approval from the US authorities. Further talks are planned this week.

Last month Chinese tech giant Huawei was placed on a blacklist that effectively bars U.S. companies from supplying it with computer chips, software and other components without government approval. Several firms, including Facebook, Google and Panasonic, have since cut business ties with Huawei. The Trump administration has previously said Huawei is a national security issue, not a trade problem.

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