Another big blow to the Chinese company
UPDATE: According to a report by Yahoo, a White House official clarified that Trump’s statement refers to the ban of US government purchases of Huawei equipment and not with requests or sales by US companies, as the latter is still being assessed.
After verbally declaring that US companies are free to continue selling to Huawei a few weeks ago, US President Donald Trump has reversed himself, yet again. The president stated that the US will not be doing business with Huawei, and will be suspending the licensing system put in place to deal that allows US companies to work with the Chinese firm.
“We’re not going to do business with Huawei,” Trump said during a press conference. “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.”
So why the reversal? It’s a very likely reprisal for China’s halt on purchases of US-made farm goods. It’s been widely acknowledged that the placement of Huawei on the US’ Entity List is part of the US Government’s tactic in the ongoing trade war with the Chinese government.
Huawei was placed in the Entity List back in May, which essentially banned any US-based company from working with the technology giant.