Trump: US Government Will No Longer Do Business With Huawei
On Friday the US President Donald Trump said that the U.S. government will no longer have any dealings with Chinese telecom giant Huawei as the trade war continues to escalate. According to the sources
In a statement according to the sources, Mr. Trump said, “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.”
Mr. Trump further added, “We are talking to China; we are not ready to make a deal, but we’ll see what happens … China wants to do something, but I’m not doing anything yet. Twenty-five years of abuse. I’m not ready so fast.”
However, the Commerce Department told the sources that it is still giving out special licenses for companies to restart sales to Huawei.
Trump’s comment refers to only the ban on the U.S. government buying from Huawei.
Trump’s decision on Huawei came after China terminated buying American agricultural products in reprisal for Trump’s surprise tariffs threat last week.
China also allowed its currency to drop against the dollar to a key level unseen since 2008.
Due to which chip stocks took a big hit at the beginning, although rebounded later. Advanced Micro Devices is now up nearly 1% after losing about 2%.
Huawei was blacklisted by the administration over security concerns. Huawei was reported as having a connection with Chinese armed forces.
Although after resuming talks at the G-20 summit, China and the US agreed to a few negotiations.
Mr. Trump agreed to hold off tariffs against China, and China agreed to purchase more agricultural produces from the US.
Huwaei was also benefitted at this deal with the US.