After month of what can only have been chaos within the Huawei ranks, United States President, Donald Trump, has confirmed that companies based in the U.S. can once again deal with the tech giant. This comes after he added Huawei to a list of companies that were forbidden from working with U.S. companies.
That then led to multiple companies distancing themselves from Huawei, including Google.
That was a problem for Huawei because it replies on Google to provide the underpinnings of Android for its phones. Multiple chip companies also stopped working with Huawei, throwing its phone and networking businesses into disarray.
Huawei founder and CEO, Rea Zhengfei, said recently that the U.S. ban on dealing with his company would cost it around $30 billion over the next two years, but it seems that won’t come about.
“US companies can sell their equipment to Huawei. We’re talking about equipment where there’s no great national security problem with it,” Trump said during a meeting with Chinese head of state Xi Jinping during the G20 summit.
President Trump has appeared to soften his tone on Chinese communications giant Huawei, suggesting that he would allow the company to once again purchase US technology https://t.co/4YNJCyKLTg pic.twitter.com/jr45f40ghP
— CNN International (@cnni) June 29, 2019
While this is undoubtedly a good thing for Huawei it will no doubt be good reason to accelerate its moves to remove its reliance on particular companies. Huawei is known to be working on creating its own phone operating system to remove the need for Android, and the same goes for in-house chip designs as well.
In the short term at least this will mean that business will return to normal for Huawei and its partners, at least on the surface.
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