US-China Trade War Continues

An executive order from Trump effectively banned Huawei, a Chinese tech giant from US communication networks in May. Huawei was immediately blacklisted by the US Department of Commerce due to “domestic security issues”. However, the ban was followed by a remission from the constraints, as Trump had allegedly agreed to “prompt” licensing.

Bloomberg revealed on Friday, August 9, 2019, that the White House would withhold the licensing of Huawei businesses when President Donald Trump told reporters outside the White House, “We are not going to do business with Huawei. … And I really made the decision. It’s much simpler not doing any business with Huawei. … That doesn’t mean we won’t agree to something if and when we make a trade deal.”

As such, the US not only denies access to Huawei within the nation, but also recommends other nations to follow suit. Countries across Europe, as well as Australia, New Zealand, and Canada, all have reportedly considered such prohibitions.Trump’s decision on Huawei was made after last week when China stopped purchasing American agricultural products in retaliation to the threat of surprise penalties from Trump.

“China wants to do something, but I’m not doing anything yet. 25 years of abuse. I’m not ready so fast,” the US President Donald Trump said, as per Business Insider.

The organisation was initially considered a national security risk, but the June announcement made it appear that the U.S. was simply using Huawei as leverage against China. With Trump citing China’s so-called abuse, the prohibition appears to be even more like retribution. Moreover, tech giants including Google and chip developer ARM have said that they would cease Huawei’s supplies and updates. A number of specialists said they expected shipments from Huawei to slide over the next six months, but owing to uncertainties surrounding the ban, they did not offer a difficult estimate.