Once again Huawei can conduct its business with American companies. Yes, it looks like finally the restriction might be diminished to some extent. Though things cannot be termed as back to normal, yet there are definitely certain improvements.
Huawei will soon return to the United States
When last month the US Commerce Department positioned Huawei as well as 70 of its affiliates on the Entity list, it seemed like this decision will never change. However, now it looks like the US is backtracking. The United States President Donald Trump, announced the news himself.
Donald Trump announced the news at a conference. The announcement was not finely detailed, yet it sounded hopeful for the company. In the vague announcement, Trump 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,”
Great news for Huawei after US ban lifted https://t.co/x9tXODobui
— MyBroadband (@mybroadband) June 29, 2019
Well, many people don’t know what to make of it. However, it looks like Huawei can get back its access to the basic things like Google Android OS and Qualcomm processors. Though, for now, nothing has changed and Huawei is still in the Entity List. Trump even repeated his old statement and called Huawei a threat to the country.
The Entity list is like a trade blacklist which incapacitates any company (which is present on the list) from functioning in the US. It blocks any US companies from buying parts or components from the enlisted firms unless Government approval is issued.
— Sputnik (@SputnikInt) June 29, 2019
The current state of affairs
When America announced a ban on Huawei, Intel-Google and even Qualcomm were forced to seize their partnership.
The announcement is suspected to be a result of the meeting between President Trump and President Xi of China. The trade war which was once in full rage even appears to be subsiding. Trump explained his meeting with the Chinese President as excellent. He even mentioned that they discussed a lot of stuff and it looks like things are back on track.
Trump agrees to allow sales of U.S. products to Huawei and to resume trade talks with China https://t.co/2EbtDTlxVw
— The Wall Street Journal (@WSJ) June 29, 2019
However, even if the ban is completely lifted off the company, its damage will have a lasting effect. The longtime goal of Huawei of snatching the first place of the smartphone market from Samsung is not going to turn into reality soon.
Nothing is for certain right now. Let’s see what path this announcement will lead to.
For more updates and information stay tuned to The Geek Herald.