American Companies Could Restart Business With Huawei Within a Month - Forex News by FX Leaders

American Companies Could Restart Business With Huawei Within a Month

Posted Monday, July 15, 2019 by
Arslan Butt • 1 min read

According to an exclusive report on Reuters, the US government could permit American companies to restart their business engagement with Huawei within 2-4 weeks. At the G20 summit in June, US President Trump had announced that the ban on Huawei would be reconsidered in keeping with the truce on the trade war as US and China resume negotiations towards a trade deal.

This was a key issue under discussion between both presidents at the meeting during the G20 summit. In addition, the US government was also pressured to make this move by American semiconductor companies. US companies earned $11 billion out of the $70 billion that Huawei spent in 2018 to procure components to manufacture its products. Some of its leading suppliers in the US include Qualcomm, Intel and Micron Technology.

As trade tensions between both sides escalated, the US had previously added Huawei to its Entity List, a move that barred the Chinese tech company from receiving technology and components from its American suppliers without special approvals from the government. The US had alleged that the Chinese government was illegally using Huawei’s technology to spy on international citizens, businesses and governmwnts.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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