In a press conference held on Friday, the President of the United States of America Trump declared that his country will not be doing business with Huawei. In accordance to what Bloomberg has had to say, the President will also be suspending the license system which is there for allowing firms from the US work with the Chinese manufacturer.
He said during the conference : “We’re not going to do business with Huawei. That doesn’t mean we won’t agree to something if and when we make a trade deal, but we’re not going to be doing business with Huawei.”
Bloomberg has also said that around 50 different companies that belong to the US have applied for licenses which would in effect allow them to work with the company during the government’s ban imposed against the company. Wilbur Ross – who happens to be the Commerce Secretary, has recently said that these licenses remain “pending.”
Although neither the president nor anyone from his administration has commented on the news that China will cease purchases of US farm goods, it is quite likely that a response will be coming soon. Granted that Huawei has absolutely nothing to do with the agriculture side of things, it is likely that the president and his administration will use the ban imposed on Huawei as leverage in the ongoing trade war between the two countries.
This all stems back to May, when Trump took the decision to place Huawei on the “Entity list” which effectively meant that all US-based companies would be banned from working with Huawei. This was always going to be bad news for Huawei, as the company had major operations in the US, working with firms which have been essential in the launch of its smartphones – even to the extent the software used in its devices.
However, later Trump announced that the US firms could end up working with Huawei again, however, to do, they would require a special license. With the most recent reports and today’s news in mind, it seems that all the revelations and developments that followed Huawei being placed on the entity list have been for nothing – as it seems we’re right back where we started all the way back in May.