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America's new deadline for Huawei .. Is Trump flops?

2019-08-18T16:43:56.684Z


The US Department of Commerce is expected to extend the deadline to allow Huawei to buy from US suppliers so it can serve its existing customers.

The Reuters news agency quoted informed sources as saying that it would extend the "temporary general license" of the Chinese Huawei additional ninety days.

The US Commerce Department initially allowed Huawei to buy some US-made goods in May, shortly after the company was blacklisted to minimize the impact on customers, many of whom operate networks in the countryside.

The deadline was due to expire on August 19, as the extension will enable Huawei to maintain the existing communications networks, and provide updates to the software of the current Huawei phones.

US President Donald Trump is expected to speak with his Chinese counterpart Xi Jinping in the coming days, a source said. However, Huawei is still prohibited from purchasing US parts and components to manufacture new products, without additional special permits.

The Commerce Department declined to comment on CNN's comments on Secretary of State Wilbur Ross on Friday, saying the existing permits were valid until Monday, Reuters said. Asked whether they would be extended, Ross said: "I will be happy to update you on Monday."

When the US Department of Commerce barred Huawei from buying US goods earlier this year, it was seen as a major escalation in the trade war between the world's two largest economies.

The US government blacklisted Huawei, claiming that the Chinese company was involved in activities contrary to national security or foreign policy interests. As an example, the blacklist order referred to a pending criminal case against the company in a federal court over allegations that Huawei violated US sanctions against Iran. Huawei has denied involvement.

At the same time, the United States says Huawei smartphones and networking devices could be used by China to spy on Americans, allegations the company has repeatedly denied.

Floundering or lying?
The decision was met with a storm of criticism by many economists, who saw it as confusion and blurring to the American decision-maker.

Mike Mish, an economic analyst and editor of the site "Money Muffin" that the extension decision shows the US administration in a floppy situation, if the US security concerns of Huawei is correct, it must be applied immediately and not included as a bargaining chip.

He added that after the decision, the government's claims that Huawei is dangerous to national security are false, or that the postponement of sanctions is stupid from Trump, or both, and he made a vote in this regard.

Sham Allegation or Foolish Response?

If China is indeed a security threat Trump should not use Huawei as a bargaining chip nor should the US supply Huawei with parts.

Either Trump's reprieve is foolish or the charges are a lie. Which is it? Https: //t.co/YXR5GW5cFF

- Mike Mish Shedlock (@MishGEA) August 17, 2019

The world's largest telecommunications equipment manufacturer is still barred from buying US parts and components to manufacture new products without additional special licenses.

Of the $ 70 billion that Huawei spent to buy components in 2018, US companies - including Qualcomm, Intel and Micron - accounted for about $ 11 billion.

Source: aljazeera

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