Trump reversal: Huawei off the table during U.S.-China trade talks

Trump reversal: Huawei off the table during U.S.-China trade talks
In the middle of May, the U.S. Commerce Department put Chinese phone manufacturer Huawei on the Entity List banning it from its U.S. supply chain. While this was done for security purposes (Huawei is considered a national security threat in the U.S because it might be asked to collect intelligence by the communist Chinese government), there was some thought that it could be used as a bargaining chip during trade talks between the U.S. and China.

Both countries are embroiled in a trade war and have imposed tariffs on imports from each other. For example, starting at the beginning of this month, a number of Apple devices manufactured in China, including the Apple Watch and the AirPods, are taxed at 15% when they enter the states. Starting on December 15th, a similar tax will be imposed on the iPhone. Apple can choose to absorb all or part of the tax and pass on the remainder for U.S. consumers to pay through higher prices.

Trump changes his mind; Huawei is off the table during U.S.-China trade talks

Back in May, U.S. President Donald Trump stated that Huawei's position on the Entity List could be used to help the U.S. get better terms from China in any trade talks between the two countries. "So it’s possible that Huawei even would be included in some kind of a trade deal," the president said at the time. "If we made a deal, I could imagine Huawei being possibly included in some form, some part of a trade deal." But Huawei now seems to be off the table. According to Reuters, the U.S. doesn't plan on bringing up the company during recently announced trade talks with China.

Google recently told Reuters that it was not going to license the Google Play services version of Android, which includes the Google Play Store and its core Android apps, to Huawei for the Mate 30 line. Huawei was originally planning on becoming the world's largest smartphone manufacturer on the back of its new flagship series; but without the licensed version of Android installed, sales of the phones will most likely lag behind projections. For the first half of this year, Huawei delivered 118 million handsets (59 million in both the first and second quarter) which put it in second place behind Samsung. The Mate 30 and Mate 30 Pro will be introduced on September 19th.

Trump's stance against Huawei seems a bit contradictory considering the actions he took last year with ZTE, another Chinese phone and networking equipment manufacturer. Like Huawei, ZTE is considered a national security threat and was banned from accessing its U.S. supply chain after failing to follow punishments imposed on it by the U.S. Commerce Department. ZTE had violated U.S. and international sanctions by selling goods and services to Iran. Unable to buy components and software from its U.S. suppliers, ZTE was hurting. Then, a surprise tweet from President Trump in May of last year demanded that the Commerce Department work out a deal with ZTE. The tweet read, "President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!" Eventually, a deal was reached as ZTE paid the U.S. $1 billion, put $400 million into escrow to cover future violations, and revamped the makeup of its board and executive suite.

We'd be remiss if we didn't point out that the ban against Huawei has a huge economic effect inside the U.S. Last year, Huawei spent $11 billion on U.S. software, parts and components and companies like Qualcomm, Intel and Micron will be impacted. In fact, Huawei was Micron's largest customer last year.



1. Carlitos

Posts: 673; Member since: Oct 23, 2011

That's brutal

2. maherk

Posts: 6966; Member since: Feb 10, 2012

I mean they made it clear since the beginning, they would rather lose the tariffs war than let Huawei dominate the 5G market. I'm not saying Huawei and the Chinese are angels, but how are wr supposed to believe the allegations of Huawei spying when the country that is accusing them of that hasn't presented one piece of evidence to prove that? The same country that was caught red-handed spying on everyone, from it's citizens and government officials , allies, and foreign ambassadors on it's soil? Ask yourself, if the Trump administration has any piece of evidence that condemns Huawei, wouldn't they have shared it already with their allies? As of right now, no other country but the US has took action against Huawei? Fanboys will say I'm a Huawei apologist, just like they swear that I'm a Samsung one as well, or an HTC fanboy few years ago, those I don't care about. But my question is directed towards rational people.

3. frequency

Posts: 111; Member since: Aug 13, 2013

that's what i keep saying that Huawei should open a factory in the US, hire Americans and use all the hardwares that Samsung or Apple used. But it seems the U.S is not important to em at all. So it doesn't matter to anyone anymore.

4. meanestgenius

Posts: 22291; Member since: May 28, 2014

Totally agree with you. China and Huawei aren’t angels. No company or country is, and anyone believing otherwise is fooling themselves. The U.S. is as guilty as they come for spying on everyone, including its citizens, but they’ve yet to provide solid evidence of Huawei spying. If they were truly guilty of it, they would dropped it already. And other countries would have taken action against them if this were true. This is all about the U.S. not wanting Huawei to dominate the 5G market, as you said. Forget the fanboys and the Huawei Hate Squad. They just want to push their own propaganda here.

5. maherk

Posts: 6966; Member since: Feb 10, 2012

No sane person or someone with empathy in their heart would defend the Chinese government, they're brutal and have no respect for human rights. And as much as the American government is corrupt, and all the mass shootings that has been hitting the nation as of late, ten times out of ten, I would rather live there over China. With that said, Huawei are innocent until proven guilty, and if tomorrow the US government provides the evidence of Huawei's wrong doings, I would immediately sell my P30 Pro and never look back at Huawei products ever again. But until that happens, I'm always going to keep Huawei devices on my shortlist of devices that I want to buy.

14. frequency

Posts: 111; Member since: Aug 13, 2013

If the Chinese people don't complain their government, then why it bothers you? Once talking about brutal and human rights, is it related with this article? and if assuming the Chinese government is really bad, how come it became the 2nd most powerful country in the world? So you talking s**t makes no sense.

18. Venom

Posts: 3733; Member since: Dec 14, 2017

We aren't perfect, which is obvious, but at least we have something called rights here.

21. meanestgenius

Posts: 22291; Member since: May 28, 2014

You clearly haven’t been paying attention to what’s going on in this country.

30. Venom

Posts: 3733; Member since: Dec 14, 2017

I have. I said we are not perfect. Keep up now.

35. meanestgenius

Posts: 22291; Member since: May 28, 2014

No you haven’t, or you’d know the “rights” thing clearly wasn’t wasn’t meant to pertain to everyone, and you would not have mentioned it.

25. frequency

Posts: 111; Member since: Aug 13, 2013

that rights here to you is not really universal to the entire world, seriously, you are brain washed. Plz travel around to other countries, go Europe, South America, Asian, and Africa. Most of them don't give a s**t to the rights you said. You live in your own dream, and weak up.

19. Venom

Posts: 3733; Member since: Dec 14, 2017

Comment 10 provided a link. You're just trying to deflect from it because you were called out on it. Lol I see why he calls you RHT. There's no propaganda. It's nothing personal. It's just that Huawei is a shady company and your denial of the truth isn't going to change that.

20. meanestgenius

Posts: 22291; Member since: May 28, 2014

Where’s your links? How come you never provided any? Lol, it’s like I said, all you do is piggyback off of others and allow yourself to be spoon fed anything the American propaganda machine feeds you. You keep telling about Huawei being shady like your favored Google isn’t being shady by using you as lab rats for their Pixels, lol.

6. rossy

Posts: 42; Member since: Aug 23, 2013

Poland agreed a few days ago not to use Huawei equipment. See this on the back story on spying earlier in a year. Australia, Canada, and New Zealand made the same decision. I have never seen any proof presented by any country when it accused another of spying. It's always an allegation.

12. jiangqiushi

Posts: 28; Member since: May 28, 2019

Huawei CEO said he would be willing to lose more money than letting Huawei be a bargaining chip between US and China. There will be short term pain for Huawei indeed, but that will speed up their independence on us technology. So it's not Trump reverse, Trump just wanted to be seemed in control.

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