U.S. President Donald Trump publicly said that the United States of America will not do business with Huawei.
This statement contradicts what President Donald Trump said one month ago during the G20 summit where he said that if Huawei wants to buy goods from U.S. companies the company can do so. Following previous statements, the United States even started a licensing process for U.S. companies who want to partner up with Huawei, but now this has been stopped.
Next week it will be three months since Huawei has been enrolled on the Entity List by the United States Government, the company being unable to work with U.S. companies. At that time, the Government gave Huawei a three months grace period so that the company can prepare for the situation in which it can no longer buy services or goods from the United States.
Trade negotiations between the United States and China are not going so well as Donald Trump might hope and Huawei will still be used as a bargaining chip. The decision to completely block Huawei in the United States appears to come after China announced that the country will no longer buy agriculture products from the United States of America. Donald Trump wants to tax products that come from China as until now these products came into the country tax free.
According to Trump, the motivation behind blocking Huawei in the United States is the fact that “it’s simpler” and most likely will allow Huawei to do business in the United States if the U.S. and China reach an agreement regarding the trade negotiations.
This is bad news for Huawei as the company might lose access to the Android operating system starting with next week and the Huawei might be unable to use the ARM technology Kirin chipsets are based on. Hardware wise, besides the processor, Huawei uses very few U.S. components for smartphones.