Trump says U.S. can sell to Huawei again after truce reached in trade war

Trump says U.S. can sell to Huawei again after truce reached in trade war
U.S. President Donald Trump and his Chinese counterpart Xi Jinping called a truce to the trade war between the U.S. and China at the G20 summit in Japan. And as we suspected all along, Huawei was used as a bargaining chip. Bloomberg reports that the U.S. got favorable terms on a deal that will see China buy "tremendous" amounts of U.S. agricultural products according to Trump. And in return, the president said, " U.S. companies can sell their equipment to Huawei. We're talking about equipment where there's no great national security problem with it."

If this statement and the truce hold up, it will then be up to the companies like Google, ARM Holdings, Qualcomm and other Huawei suppliers in the U.S. or using American tech to decide whether to resume doing business with the Chinese manufacturer. It seems like the ban has been in place for months, but it really has been about 6 weeks since the U.S. Commerce Department put Huawei on its Entity List. This prevented the company from accessing its U.S. based supply chain. Companies like Google announced that they were cutting ties with Huawei due to the ban. Considering that Huawei spent $11 billion on U.S. supplies last year, we would imagine that these firms are anxious to start shipping to Huawei again.

Huawei had planned on using its own HongmengOS (aka Ark OS) as a replacement for the Google Play services version of Android. And it was going to use its App Gallery as a substitute for the Google Play Store. The company claimed that it had a year's worth of chips that it had kept in inventory anticipating a future ban. Even though Huawei designs its own Kirin and Balong chips, it uses American sourced software and technology licensed by ARM Holdings. Surprisingly, this might have been Huawei's most vulnerable area, and it is something they will no doubt study to see how it can be better prepared to face a similar ban in the future.

Using Huawei as a bargaining chip was the plan all along


Last year, Huawei shipped 206 million handsets and continued the momentum by delivering another 59 million during the first quarter of 2019. That placed it second worldwide trailing only Samsung. The company was on track to become the largest smartphone manufacturer in the world by next year until the ban was announced. For the first half of the year, Huawei says that it shipped more than 100 million phones, but was expecting to ship a total of 140 to 160 million units this year because of the ban. It is unclear how long it will take Huawei to return to its pre-ban production. While Huawei recently noted that its current P30 line and last year's Mate 20 Pro were still going to be updated to Android Q, the real concern was over the release of its Mate 30 line later this year. These phones are expected to be Huawei's most advanced handsets for 2019.


Days after Huawei was first placed on the Entity List, Trump said "Huawei is something that’s very dangerous...from a military standpoint, it’s very dangerous...so it’s possible that Huawei even would be included in some kind of a trade deal. If we made a deal, I could imagine Huawei being possibly included in some form, some part of a trade deal." The U.S. still considers Huawei to be a national security threat because of a law in China that would allow the communist government to demand that Huawei gather intelligence on its behalf. As a result, there are concerns that Huawei devices and networking equipment contain a backdoor that would send information from American corporations and consumers to Beijing. The company has denied this and last month Chairman Liang Hua offered to sign a "no-spy" agreement with any country.

In addition to being one of the top smartphone manufacturers in the world, Huawei is the leading global supplier of networking equipment. Because of security concerns, the U.S. has implored allies not to allow Huawei's gear to be used in their telecom networks. So far New Zealand, Japan, and Australia have heeded the warnings while the U.K. is debating whether or not to allow the equipment to be used. 

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66 Comments

1. ing0ram

Posts: 22; Member since: Jan 15, 2019

This is pretty much the evidence that it was all only about the trade war to make pressure on China and not "Trumps plan to destroy Huawei" as quite a lot of people thought.

12. sgodsell

Posts: 7450; Member since: Mar 16, 2013

The Huawei telecom network equipment used by carriers is still blocked. Also this is about US firms being able to sell to Huawei. Not the other way around.

18. jacky899

Posts: 431; Member since: May 16, 2017

It is the US plan to stop Huawei's progress and success. Network equipment aside, why else would the US only ban Huawei smartphones from selling through US carriers and not the small bargain Chinese smartphone makers from selling in the US. Oneplus is also a Chinese phone with the same "security threat", yet they are allowed to sell here. The reason is Oneplus is tiny compared to Huawei and does not do their own R&D like Huawei does that can threaten US technological lead. Also Huawei sells in a week, the same number Oneplus sells in a year. If ever Oneplus becomes big like Huawei, watch them being put under the pitchfork also.

22. Back_from_beyond

Posts: 1438; Member since: Sep 04, 2015

They did the same with ZTE which was becoming the 3rd biggest brand in the USA a few years ago. Suddenly the US government does everything it can to make sure they go away.

62. Crewmax

Posts: 4; Member since: Jun 29, 2019

My brothers and sisters. You can purchase an unlocked Huawei on Amazon or if you know or have Chinese, European friend's they can buy it for you and bring them honestly for you. Many ways to sound a cat. Don't limit yourself just because the media uses scare tactics to manipulate the truth. I was always used as a bargaining tool.

26. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

Trump isn't a very good president but he is a competent business man and all this stuff with Huawei was just business and he got what he wanted, more money for the USA.

33. TechNeck

Posts: 656; Member since: Aug 29, 2014

I wouldn't say a competent business man.

49. yalokiy

Posts: 1051; Member since: Aug 01, 2016

More like business shark.

53. ShadowSnypa786

Posts: 593; Member since: Jan 06, 2017

He did what he needed he used Huawei as a pawn, got a very good deal in the trade and slowed down Huawei sales. Thats what happened and everyone acting like Huawei and China won :D These fanboys will twist anything lol

2. Diego!

Posts: 876; Member since: Jun 15, 2009

Maybe they realized they needed Huawei and their 5G technology to get 5G started.

3. Rampage_Taco

Posts: 1083; Member since: Jan 17, 2017

But does the deal allow Huawei into the US or just the to be able to buy US Products?

11. Sparkxster

Posts: 1240; Member since: Mar 31, 2017

I would like to know this as well.

58. rossy

Posts: 42; Member since: Aug 23, 2013

No, Huawei is still banned in the US. Australia, New Zealand, and Canada. The UK is considering

65. mootu

Posts: 1530; Member since: Mar 16, 2017

All the company's in the US will be using quite a few Huawei patents for 5G. They have been chosen as 5G standards and if you want to meet standards you will be using them. Pretty much like Qualcomm pretty much owns the 4G standard patent market.

4. palmguy

Posts: 983; Member since: Mar 22, 2011

Soooo Huawei can be trusted? It was all a lie.

7. Fred3

Posts: 561; Member since: Jan 16, 2018

It always was. It was about who can get to 5g first and have more control over it

21. rossy

Posts: 42; Member since: Aug 23, 2013

Do you have a problem with reading and comprehension? The US companies and other companies using the US technology will be able to supply Huawei BUT Huawei will not be able to sell in the US and some of its allies. The final status of Huawei in the US is still up in the air.

5. irwan92

Posts: 47; Member since: Feb 12, 2013

Trumps loose again

19. jacky899

Posts: 431; Member since: May 16, 2017

Trump actually won. He was able to extort $billions from the Chinese by spreading fake news in the past few years that back doors exist in Huawei equipment.

30. rouyal

Posts: 1583; Member since: Jan 05, 2018

The Huawei "back door" news started way before Trump.

54. ShadowSnypa786

Posts: 593; Member since: Jan 06, 2017

Finally well done jacky899 someone with sense

43. dimas

Posts: 3382; Member since: Jul 22, 2014

Trump and US won, how? Huawei buy american technology, money go to US but it is not yet clear if huawei can sell phones and network equipments in america. No fair trade happening, money in for U.S. but no money out.

55. ShadowSnypa786

Posts: 593; Member since: Jan 06, 2017

They won because they slowed down Huawei sales and read the 1st paragraph in the article "the U.S. got favorable terms on a deal that will see China buy "tremendous" amounts of U.S. agricultural products according to Trump. And in return, the president said, " U.S. companies can sell their equipment to Huawei"

56. dimas

Posts: 3382; Member since: Jul 22, 2014

That's what I said. Money in for US, no american sales for huawei.

63. Crewmax

Posts: 4; Member since: Jun 29, 2019

Huawei cell phones are sold on Amazon.

6. Mike88

Posts: 435; Member since: Mar 05, 2019

Trump, China, India, Russia are in the same mission, they want to put tariffs on each other to allow them to enjoy all the tax from people's wallets. They are actually running a religious mission in their own countries and pretending to be the ones they are against and wants to destroy.. All of them are agaisnt a rich class in their countries... Like Trump is actually an anti US anti Christian.. Same is for these other countries. They are not what they are pretending to be. Indian govt are some anti Indian Buddhists pretending to be nationalists. China and Russia govt already control their regions and demolished the rich class in their countries making their followers the new rich. And they are all helping each other. More nearby countries are part of this mission.

8. Back_from_beyond

Posts: 1438; Member since: Sep 04, 2015

Would you like a tin foil hat with that?

9. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

Tissues??

44. dimas

Posts: 3382; Member since: Jul 22, 2014

The concept of religion already died thousands of years ago when men discovered science and industrialization. Your opinion is not new, and people of the ancients are aware that religions are just politics and power play with different spelling.

47. Rager722 unregistered

Science is a religion

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