US President Donald Trump announced at the G20 Summit in Osaka, that he relaxed his ban on American companies doing business with Huawei. “We’re talking about equipment where there’s not a great national-emergency problem with it,” Trump said after a meeting with Chinese President Xi Jinping, according to The Wall Street Journal.
The US president signed an executive order in May this year, banning any US company to do business with the Chinese phone and IT hardware manufacturer. The US President cited national security risks in his decision, accusing Huawei that its gear could be used to spy on other countries and companies. The Chinese have denied all of these claims.
The decision to go easy on Huawei came as a surprise to many. This restriction is just part of the ongoing trade war between the US and China. “We’re going to work with China on where we left off to see if we can make a deal,” Trump reportedly said during a news conference.
Huawei was quick to jump on the announcement, calling it a “U-turn” on its Huawei Facts Twitter account. Although it’s not clear what restrictions will be lifted, this means companies like Google and Qualcomm can tentatively continue business as usual with Huawei, without requiring special permission from the US federal authorities.
John Neuffer, president of the Semiconductor Industry Association, a trade group for makers of chips for computers, phones, and other equipment, told the Journal he’s “encouraged the talks are restarting and additional tariffs are on hold” but more details are needed on what Huawei can now buy from member companies.