Has The United States Really Lifted Its Ban On Huawei?

By | July 8, 2019

After the G20 talks between China and the United States, the United States relaxed its sanctions on Huawei. At a news conference, the President of the United States responded to the question of whether American companies would be allowed to sell products to Huawei. Trump said, “I think that’s possible.” We will continue to sell these products.

But to what extent has it been relaxed? The outside world is not clear. U.S. industry and security officials say Huawei is still on the export control blacklist. Peter Navarro, a White House trade adviser, said the lifting of the ban was limited to “low-tech products that do not affect security” and “in the short term, a small amount of semiconductors sold to Huawei less than $1 billion a year”. Huawei purchases $67 billion of spare parts from global companies every year, and the degree of sanctions relaxation is likely to be limited.

From another point of view, the so-called “lifting the ban on Huawei” is Trump’s “self-help” to a certain extent. If the U.S. government imposes a ban on Huawei, it will force U.S. and European semiconductor companies to stop cooperating with Huawei, but they fear that the resulting supply gap will only promote technology development in China and eventually lead Chinese companies to dominate the $200 billion Chinese semiconductor market. In addition, the sharp decline of the semiconductor industry in the U.S. stock market in the past few days also confirms the negative attitude of the capital market towards “blocking Huawei”, which will exert great pressure on Trump to a certain extent.

Therefore, for Trump, the announcement of the lifting of Huawei’s ban at this time not only “shows good” to the semiconductor giant of the United States, but also gives himself a step. But it’s not that he’s really willing to do it.

Leave a Reply

Your email address will not be published. Required fields are marked *