Overnight developments in the US-China trade war could be good news for Huawei, with US President Trump announcing a truce of sorts after two days of talks betwene the US and China.
While the headline item won’t be of much interest to many – suspension of a $US250bn tariff hike on Chinese imports isn’t all that sexy – what it represents is more promising, especially for those with an eye on tech made in China.
One company bound to be excited by developments is Huawei, which will be hoping that its reprieve might be coming next. The story was out on ABC News about an hour ago, but early signs emerged earlier this morning and late last night:
'You're very tough negotiators': Trump's truce in China US trade war https://t.co/et8vnNfuNA
— ABC News (@abcnews) October 11, 2019
Last night, the Wall Street Journal shared hints that the Trump Administration would consider lifting some of the sanctions against Huawei, allowing it to renew contact with American suppliers, including key partners Google and Microsoft. It’s unclear exactly when (or if) this relaxation in the ban will take place, but there are also indications that the US may grant some licences to US firms to allow them to supply “nonsensitive goods” to Huawei.
Exactly what constitutes a “nonsensitive good” hasn’t been made clear anywhere. However, if you look at what’s causing Huawei the most pain, licensing software from Microsoft and Google would have to be at the top of that list. Thus, you might imagine, those particular sanctions might not be the first lifted.
That said, as the US-China tensions ease – and hopefully continue to ease – these sanctions may eventually be lifted too.