Trump Declines to Do Business with Chinese Company Huawei


President Trump on Friday announced that the US would no longer do any businesses with the telecom giant Huawei. This comes amid talks with China to strike a trade agreement, but President Trump has officially confirmed that if and when a deal is struck, Huawei will be left out of it.

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Huawei, which had been blacklisted by the US Department of Commerce, is set to face even more significant problems due to this announcement. Trump had agreed to issue “timely” licenses to US companies that would like to do business with Huawei. Wilbur Ross, the Commerce Secretary, had confirmed that there were a total of 50 license requests so far but their fate remained uncertain.

However, after this big news by President Trump, the licenses may no longer be issued to the companies, including Google. This happened days after the government issued a federal ban on buying any equipment from five Chinese tech companies, which includes Huawei.

In a statement by the Department of Commerce, they are still working on processing the licenses so that the American companies may sell to Huawei. The Department further clarified that currently, nothing has changed since Trump’s statement only affects direct trade between the US government and Huawei.

The Chinese company first got into trouble with the US government over what it claimed to be security concerns. According to lawmakers, Huawei is a security threat since its equipment could be used to spy on other companies and countries.

While there still seems to be hope for Huawei in the US market, it appears that it can no longer have any business with the federal government when the ban comes into effect in the coming week.

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Trump Declines to Do Business with Chinese Company Huawei

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