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Huawei gets back its US supply chain after Trump's "U-turn" policy



Trump said Saturday that "US companies can sell their equipment to Huawei," so the transactions will not present a "big, national emergency" problem.

Trump's comments on the G20 in Japan came after a highly anticipated meeting with Chinese President Xi Jinping. The two sides met to discuss the immortality of the trade conflict, and Huawei, one of the world's largest smartphone manufacturers, has become a flashpoint in the battle.

In May, the US Department of Commerce banned sales of US-made goods to Huawei without first obtaining a license. US officials have accused the company of working to undermine US security and foreign policy interests.

Trump said Huawei was still part of the ongoing trade discussions between Washington and Beijing, but at present he would move to continue to allow US companies to sell parts to the Chinese company.

The Ministry of Commerce, which issued the ban on Huawei in May, did not respond to requests for comments on how it will change the company's status. The White House did not immediately answer questions about whether it had already requested trade to review the problem.

Huawei responded to one of the company's official twitter accounts: "U-turn? Donald Trump suggests he would allow #Huawei to again buy US technology!"

Huawei has denied allegations of inaccuracy. And it has lobbied in recent weeks to regain access to US products, which is the key to its supply chain.

Huawei's place in the global technological ecosystem can make it too big to fail
Huawei is heavily dependent on data plots imported from companies like Intel (INTC) and Micron (MICR). Google also supplied the company with its Android operating system.
Google said in May it would be in line with the Trump administration's new policy and restrict Huawei's access to the Android platform, which was seen as a devastating blow to Huawei's smartphone business.
However, Micron is considered Huawei as one of its largest customers and is facing a sharp decline in revenue. Global sales of smartphone devices fell 40% during the weeks immediately after Huawei was blacklisted. Micron announced earlier this week that it found a solution to the ban and could resume at least some deliveries to Huawei. Intel reportedly made a similar move.

These companies did not respond promptly to Saturday's request for comments.

Trump seemed to admit that US suppliers are not satisfied with current policies.

"The US companies were not so happy they couldn't sell," he said. The United States sells a "huge amount of product" to Huawei, he added.

Micron has found a way around the US ban on Huawei

However, the prohibition of purchasing goods from US companies is not the only policy hurdle Huawei faces in the United States. An executive order Trump, signed in May, outsources US companies from buying or using Huawei telecom equipment. Officials said it could pose a spyware risk for Western infrastructure networks.

Huawei, considered a world leader in developing technology to support 5G networks, has said banning the US company would ultimately hurt US companies and consumers.

"Restricting Huawei from doing business in the US will not make the US safer or stronger; instead, this will only limit the United States to worse than more expensive alternatives, causing the US to lag behind at 5G deployment," the company said in a statement that responds to the executive order.


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