Trump gives Huawei a "stay of execution"

Trump gives Huawei a "stay of execution"
Last year, when ZTE was in the midst of an Export Ban that prevented it from obtaining needed parts and components from the U.S., President Donald Trump surprised everyone with a tweet that called for the Commerce Department to lift the ban. Trump wrote that "Too many jobs in China lost." This was the same guy who throughout the 2016 campaign complained that China was stealing jobs from the U.S. Nonetheless, a deal was eventually worked out and the ban was lifted in the nick of time.

Now let's move ahead to last week when Trump signed an executive order that declared a national emergency over U.S. technology. At the same time, the administration put Huawei on the Commerce Department's Bureau of Industry and Security (BIS) Entity list. This prevents U.S. firms from selling parts and components to Huawei without obtaining a government license. And it led Google and a number of chip makers to cut ties with Huawei, putting its phone business in jeopardy.

But as reported today by the Financial Times, the Trump administration surprisingly came to the rescue of Huawei (while in the middle of a trade war with China, we should note) by issuing a temporary license that allows U.S. companies to do business with Huawei for three months. However, there are restrictions. The license allows Huawei suppliers in the states to sell Huawei parts and components "necessary to maintain and support existing and currently fully operational networks and equipment, including software updates and patches." Also allowed under the three-month reprieve are contracts "necessary to provide service and support, including software updates or patches to existing Huawei handsets."

The Trump administration gives Huawei a "stay of execution" for three months


Of course, this doesn't mention anything about future Huawei handsets, including the Mate 30 line expected in the second half of the year. While Huawei does design its own chipsets for high-end models, it does use software from U.S. companies to create these designs. Huawei paid its U.S. suppliers including Qualcomm, Micron and Intel $11 billion last year and chip experts say that the company needs a few years before it is completely self-reliant.

Even if the Trump administration does allow U.S. companies to do limited business with Huawei for a few months, it is unknown at this stage whether Google, Qualcomm and some of the other U.S. companies that have broken ties with Huawei will continue to supply the company. An executive at a national security consultancy called today's news "a stay of execution."


Huawei was the second largest smartphone manufacturer in the world during the first quarter of 2019 and planned on taking the top spot away from Samsung by next year. The company was on such a path until Google and other companies, following the placing of Huawei on the Entity List, pulled the rug out from under the company. Huawei is also the number one supplier of networking equipment in the world, and some of its gear uses U.S. parts and components.

The U.S. considers Huawei to be a national security threat because of the possibility that it can be called upon by the communist Chinese government to gather intelligence. While always denied by Huawei executives, American lawmakers are concerned that the company's phones and equipment contain backdoors that can be used to send intelligence to Beijing.
Just the other day, Huawei chairman Liang Hua said that the company would sign a "no-spy" document with any country.

Huawei is by no means out of the woods, and it does appear more and more likely that the company is being used as leverage by the U.S. in the trade war with China.

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47 Comments

39. Donbenie

Posts: 263; Member since: Aug 04, 2013

A Game of brinkmanship,you can only push the Chinese OEMs so far,before they decide to become independent of Google and co..

28. Mikele

Posts: 199; Member since: Nov 19, 2013

Just a political game between US and China. They needs each others for their economy!

37. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

the u.s. government needs to play their cards right, or else things could backfire and they could get TRUMPed

42. drunkenjay

Posts: 1705; Member since: Feb 11, 2013

china is more self reliant than the us. thats why china is one of the buggest copycats in the world.

46. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

ffs, theres alot of copycat going on in the u.s as well...dont single out china, dont even go there. china is the first country to land on the far side of the moon...remember, china is a powerful country...tech and military

23. Kohai

Posts: 51; Member since: Jun 04, 2010

You should read about current state of rare earths...China is the owner of the 80% of the global production.

36. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

like i said earlier, most gadgets/products in my home is made in china...i dont think i've ever bought anything that says 'made in the u.s.'...lol

41. drunkenjay

Posts: 1705; Member since: Feb 11, 2013

thats because chinas trade with the us is free in exportation but taxed heavily importation. This is why chinas products are very cheap and sjilping costs are close to non while the us is like 20 to 100 usd to ship it outside the country.

18. BullDozer

Posts: 160; Member since: Dec 18, 2015

Bye bye Google Android... Most Android OEMs are Chinese and they are now forced to build a new OS. Only big one left is Samsung which has not been very committed with current Android and google apps.

17. mariosraptor

Posts: 194; Member since: Mar 15, 2012

This is now because Trump got a phone call. If you don’t lift the ban I’ll ban whatever US made and all US interest stuff to come in or go out of China. No more made iPhones. No sells of them. Etc. give them a few days and all order will be restored. Huawei will continue business as usual. And this his only term as a president.

27. Cat97

Posts: 2057; Member since: Mar 02, 2017

I suppose you are aware that there are Chinese workers making those iPhones ? Workers that would remain without a job ?

35. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

im sure you are aware that the chinese government can play the game of local interest as well.

43. whatev

Posts: 2456; Member since: Oct 28, 2015

It’s about national security, it’s got nothing to do with the trade war, how the hell is oneplus selling now in the US?

47. almostdone

Posts: 452; Member since: Sep 25, 2012

Yes if onePlus ever becomes a giant they will do the same. If you only have a tiny share of the market then they don't care. OnePlus is not a threat to the US yet...

16. Zylam

Posts: 1826; Member since: Oct 20, 2010

This whole thing is sickening to the core. To think that the US government can just shut off access to US suppliers and cripple a worldwide company that has users all over the world, not to mention, the blood sweat and tears it took to build a company of the caliber of Huawei. And what exactly has Huawei done? This whole situation is disgusting and we lost a huge competitor. I am not fond of Huawei phones, the skin is not for me but Huawei are the reason why we have such awesome gradient colours and the P30 Pro is the current battery king. There is no doubt they have been the ones pushing Apple and Samsung in the last 2 years. Google and the US government should be ashamed. This also showcases the massive disadvantage of Android for OEM's, every single Android Oem is effectively at the mercy of Google and the US government. That is just wrong. Perhaps it's time for the Chinese OEM's to band together and stick it to Google by building their own OS and ecosystem. I know it will take time but imagine if every Chinese OEM switched away from Android over night. Within the year the massive amount of money and ad data Google would lose would make them dance in a different way. But hey I'm sure it's Apples fault and there is nothing wrong in the land of Android.

20. TheOracle1

Posts: 2340; Member since: May 04, 2015

The current flagship battery king is the Vivo Nex S.

26. Cat97

Posts: 2057; Member since: Mar 02, 2017

"Awsome gradient colors" ? You mean, those looking like garbage fly colors ? Like OnePlus CEO said, gradient colors look good on pictures but do not sell. I would gladly do without this kind of "innovation".

33. JCASS889 unregistered

The Chinese would rather steal property they are lazy, they cheat and steal. Id say they deserve it and hopefully they actually do invent there own os as that would be a first

34. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

sounds like you're describing the u.s. as well...the whole spy/espionage game is a worldwide competition. as a side note, i have bought way many more electronic gadgets made in china than gadgets made in the u.s....the u.s government should stop acting innocent and stop pointing fingers ffs.

44. TBomb

Posts: 1750; Member since: Dec 28, 2012

the electronic gadgets are made in china because it's cheaper to build there and ship halfway around the world than to just build in US. Just because it's built in China doesn't mean it's Chinese. So in that sense, the u.s. government is innocent.

10. vikingsfootball09

Posts: 114; Member since: Oct 02, 2013

never liked trump, never will...bring back obama lol

25. Cat97

Posts: 2057; Member since: Mar 02, 2017

Well, with Trump at least there is some (non-violent) action in the world :)

29. inFla

Posts: 231; Member since: Aug 17, 2018

Obama caused all the problems the country faces now.

32. Fred3

Posts: 620; Member since: Jan 16, 2018

No Bush did

5. Nimbus

Posts: 442; Member since: Apr 02, 2018

Huawei will stop providing future android updates to its current line of flagship smartphones and future flagship smartphones so far that how I understood it,may be it includes midrange line of smartphones too.Guess Huawei could leave android for good and come with it's own OS just like Samsung with it's tizen and Msft with it's windows phone/mobile OS.

9. chris2k5

Posts: 291; Member since: Nov 17, 2012

Should be easy enough. Android is just a copy of iOS and the Chinese companies are very good at copying.

12. vgking9699

Posts: 238; Member since: Mar 01, 2019

Exactly, there’s actually fake apple stores in China that look and feel like real Apple stores and even the employees think they work for apple but they don’t and no connections to Apple whatsoever

15. Feanor

Posts: 1448; Member since: Jun 20, 2012

Huawei's skin EMUI on top if Android is an iOS copy, not Android as a whole. This is also the reason why I'm not so fussed about Huawei being attacked. When you ask big bugs for your phones and you give to people an Apple copy, then you deserve a lesson once in a while.

19. jacky899

Posts: 434; Member since: May 16, 2017

My P30 Pro doesn't feel a bit like IOS. It looks and feel just like any other android phones I used. Maybe you are referring to the rounded corner square icons which is typical of android and IOS?

30. Feanor

Posts: 1448; Member since: Jun 20, 2012

Rounded corner square icons which are typical for iOS only; Android allows them for those Chinese manufacturers that love copying iOS. Google themselves as well as other Android OEMs that have some self-respect use round icons. Also the iconography for Health, Music and Phone apps is a total ripoff of Apple icons. And for no good reason other than because this is what Chinese do. Also the default lack of an app drawer that was very fashionable among Chinese manufacturers etc.

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