U.S. Government to Allow Huawei to Buy From U.S. Suppliers

Posted on June 29, 2019 by Mehedi Hassan in Hardware, Mobile, Android with 41 Comments

Huawei has been at the center of the ongoing trade dispute between the United States and China. In May, the U.S. government blacklisted the company from doing business with any U.S.-based companies, leading to many of Huawei’s partners severing ties with the phone maker.

The biggest hit was probably Google suspending its business with Huawei, preventing any future Huawei phones from shipping with Google’s incredibly valuable Play Store services. Other companies later joined Google in suspending business with Huawei, with chipmakers like Qualcomm no longer supplying to the Chinese phone maker.

The U.S. government is now backtracking slightly in the Huawei ban. At the Group of 20 summit in Osaka, Japan, president Donald Trump said that the government will once again allow Huawei to buy components from U.S. suppliers. That means companies like Qualcomm and Intel will once again be able to start doing business with Huawei, selling components like the chips that power Huawei’s phones.

“U.S. companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it,” Trump said at the press conference. “We’ve agreed to allow them to continue to sell that product so that American companies will continue,” he later insisted.

It still remains unclear whether this means Huawei will be able to continue doing business with Google, and thus getting access to the company’s Play Services. Either way, it suffices to say that Huawei’s trust in the U.S. government has essentially been destroyed, and the company will slowly move on to building its own alternatives to Google’s Play Services that are so crucial for the success of its smartphone business.

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Comments (41)

41 responses to “U.S. Government to Allow Huawei to Buy From U.S. Suppliers”

  1. madthinus

    Hard listening to the man. Effectively admitting what the casual observer could see clearly, the ban on Huawei will have long term negative impact on the USA and shorter term negative impact on China

  2. martinm

    This man is a menace to business, world commerce, international relations and human rights. Trump, if you have evidence of a real security breach, then produce it. No one wants national security to be put at risk. But if you don't have it, for once keep your mouth shut and let the adults talk.

  3. Winner

    What I want to know is how this is not a game.

    If Hua was actually a spy for the Chinese government then anybody worth their salt wouldn't be suddenly relaxing sanctions against them.

    On the other hand, if this was just a "trumped-up" (pun intended) claim to start a trade war then you would bargain and perhaps relent. Which means the reasons given for the Hua boycot must be lies and we are being played by our own government.

    • MachineGunJohn

      In reply to Winner:

      I'm not sure what you're struggling with here because this is really really simple. They are letting Huawei buy components from the US because there is no threat from those components being used. The security issue is with using chicomm equipment in network infrastructure where US government or US corporate ip data flowing through it can be rerouted through chicomm server at the flip of a switch, as chicomm infrastructure companies have been caught doing before. This merely lifts the ban on supplying our components to them. It does not lift the ban on their infrastructure equipment being used in the US, or their consumer equipment being used by US government employees for work or inside any US government facilities.

    • 02nz

      In reply to Winner:

      My sentiments exactly. I've always thought the hysteria surrounding Huawei was overblown. While I probably wouldn't buy their network equipment if I ran a country, I have no problems with their client devices (any spying on the client end would be much too easy to discover.) The U.S. has been screaming at everyone else not to buy Huawei because of cybersecurity concerns, now all of a sudden it's "oh never mind." I'd say it hurt our credibility, except there was already not very much left.

  4. Daishi

    It’s...almost as if... they were never a national security risk in the first place... But surely the leader of the free world wouldn’t lie to us

  5. Daekar

    And another move is made in the trade negotiation chess game. Will be interesting to see what he gets out of it.

  6. jules_wombat

    What a lot of political nonsense. Americans will soon have to accept that China has superior technology in some sectors, rather than stifling innovation and progress just because excessive national pride.

    • MachineGunJohn

      In reply to Jules_Wombat:

      They may someday but that day has not come yet. When you take ip from others you initially lack the background required to advance it. There is no stifling of technological progress, everything Huawei builds is using technology both acquired and available from elsewhere.

      The multiple different actions in play here have only to do with security on the one hand and economic fairness on the other. Pride is not involved in either.

  7. F4IL

    TBH i didn't expect the U.S govt to backtrack so quickly. It's going to be like reading last weeks news in rewind.

    • PeteB

      In reply to F4IL:

      We don't have a government right now, we have a crime syndicate. So thinking of anything in terms of conventional "government" is folly.

      • terry jones

        In reply to PeteB:
        When you get out of high school and enter the adult world, I hope you will have enough self awareness at that point to realize what an idiot you sounded like at this moment.

        • Rickard Eriksson

          In reply to terry jones:

          You mean the real world that is ruled by fact and not mindless drivel that anyone with critical thinking would see right through?

          Because you have done such a good job not sounding as inane as the US government lately /s

  8. quicktechsolutions

    Huawei Is The 2nd Biggest Company In Technology After Samsung I Think. Thanks For Sharing This Information.