The ongoing Huawei drama has been fascinating to watch, as one of the world's largest technology companies is slowly eaten away by trade bans. Huawei lost the ability to use Google services on its Android phones, had its revenue forecasts slashed, and started working on an alternative to Android. Today might be the beginning of the end of Huawei's troubles, as President Trump announced today that "U.S. companies can sell their equipment to Huawei."
Huawei was added to the United States Entity List back in May, which prevented U.S. companies from working with Huawei at all. Google couldn't license Huawei's phones, Huawei couldn't obtain Snapdragon chips from Qualcomm, and so on. The official reason for the ban was security concerns, but it was fairly obvious the ban was merely part of the ongoing U.S./China trade war. Trump even said back in May that a lift on the Huawei ban could be included as part of a trade deal.
President Trump and China's Xi Jinping are attending the G20 trade summit in Osaka, Japan. As part of a tentative agreement that would see China buying "tremendous" amounts of U.S. agricultural products, companies in the U.S. will be allowed to sell components to Huawei.
President Trump has appeared to soften his tone on Chinese communications giant Huawei, suggesting that he would allow the company to once again purchase US technology https://t.co/4YNJCyKLTg pic.twitter.com/jr45f40ghP
— CNN International (@cnni) June 29, 2019
However, Huawei remains on the Entity List, so it is still technically illegal for U.S. firms to trade with the company. President Trump says the full removal has not been decided yet.
ON OR OFF?: “We are talking about that, we have a meeting on that tomorrow or Tuesday,” says Trump when asked to clarify if Huawei is going to be taken off the US trade entity list. Looks like things are not confirmed just yet #G20Osaka
— Olivia Siong (@OliviaSiongCNA) June 29, 2019
While the agreement isn't quite finalized, this might be the end of Huawei's troubles — until another trade war starts, anyway.