The administration of Trump extends the cancellation of the US tech sale to the Chinese manufacturer Huawei. The major concern of China’s tech giant is that for how long will Huawei suffers due to the ongoing trade wars between China and America.
The telecommunication provider and the smartphone makers go through collateral damage due to the present-day trade war between Beijing and Washington. The president of the US, Donald Trump, is showcasing a willingness for leveraging the sanctions as a bargaining chip. Back in May 2019, the government of the United States put Huawei and its tech advancement in a blacklist.
According to the US government, Huawei is a direct threat to the national security of the American government and the country. Moreover, different organizations across the country cannot sell the technology of the company without having approval from the government. During the phase of banning Chinese goods and services, the US also did put an exemption on a narrow list of the products.
However, the expectation did expire on Monday the 19th of August 2019. Nevertheless, the Department of Commerce of the US chose to extend the cancellation for another 90 days. Wilbur Ross, the commerce secretary of the US, said that its main goal of the Monday is to help a few companies incorporating Huawei’s technology. The wireless and internet companies that currently rely on Huawei gains more time in transitioning away from the reliability of the Chinese manufacturer’s products.
Currently, the distinctive exports revolving around Huawei will choose to remain constrained. Nevertheless, it is not clear as to how much they are putting things into practice. The sanctions do not bar the telecom companies in the US to buy connectivity equipment from Huawei. Moreover, the semiconductors companies which supply Huawei are determined that the export sanctions will not apply to a significant portion of the sales.
Paul Triolo, the Eurasia Group worldwide risk assessment firm said that several ongoing shipments concerning semiconductors from the US to China do not come under consideration. On the other hand, Huawei has also been significantly affected due to its conflict with the Google operating system. The concern says that Huawei cannot use the Google Android OS on its smartphones.
Huawei is curating its own operating system which is said to be better than the present-day Google operating system. It is important to note that America did treat Huawei in an unjustified manner. Nevertheless, Huawei’s was with the US didn’t affect the business of the company. Moreover, Huawei’s reach is not confined to America; the Chinese manufacturer is very popular among Asian countries as well.