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Trump won't discuss Huawei in trade talks

(Image credit: Karlis Dambrans / Shutterstock)

US President Donald Trump has claimed the US will not discuss on the ongoing status of Huawei in the country during ongoing trade talks with China.

Earlier this year, the US Department of Commerce effectively blacklisted the Chinese mobile giant on national security grounds, preventing American firms from doing business with the company.

The ruling limited Huawei’s access to important components and to the Android operating system as well as Google applications.

Trump Huawei

The US has also confirmed some US suppliers will be able to trade with Huawei – if there is no security risk – however it has not approved any of the 130 licence applications it is reported to have received to date. It is also unclear which areas the government deems not to be a security threat

Trump’s position on the matter has been fluid, with the President suggesting he would be open to including Huawei in any trade deal. The two countries have been engaged in a long-running dispute, exchanging tit-for-tat tariffs on each other’s goods.

Talks between China and the US are ongoing, but Trump’s position appears to have changed again.

“It’s a national security concern,” he is quoted as saying. “Huawei is a big concern of our military, of our intelligence agencies, and we are not doing business with Huawei.

“And we’ll see what happens with respect to China, but Huawei has been not a player that we want to discuss, (that) we want to talk about right now.”

Washington has offered some wiggle room, allowing Huawei to procure technologies from certain suppliers in order to serve US rural operators that use its equipment – an arrangement it has recently extended. However the blacklisting is a major blow to Huawei’s bid to overtake Samsung and become the world’s second largest smartphone maker.

The situation has also had a significant impact on US vendors, many of whom will lose significant revenue streams if the ban persists. Of the $80 billion spent by Huawei on components last year, $11 billion was to American companies – including Qualcomm, Intel and Broadcom – who have petitioned for a relaxation of the restrictions.

Huawei has persistently denied any allegations of wrongdoing

Via Reuters