The recent Huawei ban has certainly created chaos in the tech industry. It also generated a feeling of insecurity among the Huawei and Honor smartphone users. But the ban didn’t last long. The US president, Donald Trump, finally lifted up the ban and opened the doors for US companies to sell their products to the Chinese tech firm.
A few weeks earlier, the US government had enlisted the Chinese tech company and 70 of its associates in the “Entity list”. Back then, the Chinese tech firm was referred to as a “threat to national security”. The government also prohibited US companies to sell any of their products to Huawei. But in the sidelines of G20 summit, Trump seems to have got little softer on the matter and abruptly lifted up the ban.
But there are many, who believe this as a part of the trade deal with China. A report from the Wall Street Journal also suggests that Chinese President Xi Jinping insisted that lifting the Huawei trade ban would be an integral component in any trade agreement with the US.
There was also the news about the US companies like Intel and Xilinx lobbying the US government to lift the ban imposed on Huawei. There are reports that the US chipmakers like Intel, Qualcomm, and Micron having earned a total of $11 billion with the business with Huawei. And that may have to some extent made the president go easy on Huawei.
The US president uplifted the trade barrier for the Chinese company and gave the following statement to put a light on the matter.
“One of the things I will allow, however, is, a lot of people are surprised we send and we sell to Huawei a tremendous amount of product that goes into the various things that they make.
“And I said that that’s okay, that we will keep selling that product. These are American companies… that make product and that’s very complex, by the way, and highly scientific.
“And in some cases, we’re the ones that do it, we’re the only ones that do it. What we’ve done in Silicon Valley is incredible, actually and nobody has been able to compete with it, and I’ve agreed and pretty easily, I’ve agreed to allow them to continue to sell that product.
“So American companies will continue and they were having a problem, the companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever it was potentially happening with respect to Huawei, so I did do that.”
This means that Huawei could now purchase products from US companies. Any previous lockouts from Microsoft, Qualcomm, and Google will also be abruptly resolved. But the US government has not yet removed Huawei from its “Entity list” yet. So, we are not quite sure if the US government can revert back its decision and impose a ban again.