Sat. Jan 25th, 2020

Trump prepares to extend his moratorium on Huawei again



The Government of President Donald Trump prepares a new extension of its moratorium on the ban on US companies from maintaining business ties with the Chinese manufacturer Huawei, while trade talks continue between the US. and China

The new moratorium would be six months, that is, twice the time granted in August, and would expire therefore at the end of May 2020, US media reported this weekend and advanced by the Politico newspaper.

If the information is confirmed, the current extension announced on August 19 would expire at midnight on Monday, November 18, the date on which technology providers such as Google, Intel, Xilinx or Broadcom should stop selling to Huawei.

The Department of Commerce and the White House, consulted by Efe, have avoided commenting on the issue.

For his part, the president has also not referred to Huawei and has limited himself to stressing that China will buy again "in large volumes" within the first phase of the tentative trade agreement, which is still pending signing since negotiations to specify details continue

The Trump Administration first announced the ban on US companies. of maintaining commercial links with Huawei in May of this year, but since then it has already decreed two moratoriums that allow its country's firms to continue doing business with the Chinese manufacturer.

The US Executive is suspicious of the company's links with the Government of China and claims to have suspicions that Huawei could use its mobile phones and other technological equipment to spy abroad and provide information to the leaders of the Asian country.

Although the market share of Huawei mobile phones in the United States is very small (less than 1% according to the most recent Statcounter data), the Chinese company does have a strong presence as a provider of telecommunications equipment in rural areas of the United States. country.

Its products, substantially cheaper than those of the competition, have allowed the deployment of wireless networks in large parts of the country sparsely populated in which, had it not been for Huawei, these infrastructures would have been virtually unfeasible from a financial point of view.

Along with its presence in rural areas, the other key aspect to understand the impact of Huawei in the US economy. they are the suppliers of technological components and software, such as Intel, Xilinx and Broadcom chip manufacturers, and the internet giant Google, owner of the Android operating system, present in Huawei devices.

Of all the US suppliers of Huawei, Google is the one with a higher profile, since the phones that the Chinese manufacturer sells worldwide (and that are especially popular in markets such as Latin America and Europe) have Android preinstalled and services such as Chrome, Gmail, Google Maps, YouTube and the Google Play app store.

The veto to Huawei is framed in a context of trade war between the United States and China, which has been open since practically the moment that Trump came to the Presidency, in 2017, and that has been settled for the moment with tariffs on hundreds of millions of Chinese imports to the US and similar reprisals by Beijing

Trade tensions between the two largest economies in the world have affected global activity, with special emphasis on international supply chains.

Specifically, the International Monetary Fund (IMF) lowered growth forecasts for both the US in October. like China for this year and next, as well as the prospects for global growth in the face of growing uncertainty.

. (tagsToTranslate) Trump (t) prepares (t) extend (t) moratorium (t) Huawei



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