US allows Huawei to buy from US companies in a major breakthrough
- The US President announced to lifts the ban from Huawei.
- US companies will be able to sell their equipment to Huawei but only the equipment which does not involves any great security risk.
- Donald Trump announced to lift the ban on the sidelines of the G20 Summit.
- Chinese giant will be able to do the business after officially lifting the ban.
The US companies will be allowed to work with Huawei again after the announcement by President of United States Donald Trump. Earlier, President Donald Trump called the Chinese giant a threat to national security. By the lifting of the ban, the US companies can sell goods to the smartphone and network supplier. The US placed the ban on Huawei in the middle of May.
Huawei is still on the “Entity List”, a list that indicates the companies that the US Department of the Commerce bans from doing business with the US. On the sidelines of the G20 Summit, Donald Trump said that the US companies can sell their equipment to Huawei. He didn’t elaborate any details regarding the recent turnaround in the policy towards Chinese business. US companies will be able to sell their equipment to Huawei but only the equipment which does not involves any great security risk.
It is now up to the US how soon it is going to remove the Huawei from the Entity List. Even if the ban is fully lifted by next week, still it will be having an effect on the company’s revenue. The company has already said that it’s 2019 revenue will be $30 billion below estimates due to the disruption caused by the ban.
Huawei has promised to bring Android Q to several high-end devices and if Huawei and Google get to work as they were doing before, the users will be able to get the phones with security and system updates.
The US-China trade volume
The US has imported a record of $539 billion of goods from China in 2018 alone and exported just around $120 billion in goods to China. Despite tensions on various fronts, the US-China annual trade worth billions of dollars and Chinese goods has got an upper hand in terms of exports to the US.
Do you think that the possible lifting of ban from Huawei will ease the ongoing trade war between the US and China? Please leave your comments