Trump Gives Huawei Another 90-Day Reprieve: Who Is Desperate For A Deal?

For the second time since May, Trump postponed an order that would block US firms from supplying Huawei.

Winning trade wars is so easy that U.S. Set to Give Huawei Another 90 Days to Buy from American Suppliers.

The U.S. Commerce Department is expected to extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers, two sources familiar with the situation said.

The “temporary general license” will be extended for Huawei for 90 days, sources said.

An extension will renew an agreement set to lapse on August 19, continuing the Chinese company’s ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.

U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss Huawei in a call this weekend, one of the sources said.

The U.S. government blacklisted Huawei alleging the Chinese company is involved in activities contrary to national security or foreign policy interests. The United States says Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

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?

Second question: Who is it that seems desperate for a deal? Trump or China?

Disclaimer: The content on Mish's Global Economic Trend Analysis site is provided as general information only and should not be taken as investment advice. All site content, including ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with
Moon Kil Woong 5 years ago Contributor's comment

There are security papers written on their flaws, they are glaring and transparent, and demonstrate a total lack of basic security concepts like placing a fixed admin password in their devices and tons of basic known security holes caused by stupidity more than anything else. They are not sly, hidden, or even what one would call creative or inventive.

Moon Kil Woong 5 years ago Contributor's comment

Sadly the simple fact is #Huawai's networking products have major security flaws, however, this is more due to their lack of expertise than anything else. It is right to block purchasing their product to sensitive industries in the US. However blocking Huawei from buying US equipment is rather dumb given it hurts our own industry and encourages China to make competing products. Illogic is guiding most of our trade war and Huawei has become a victim of the trade war now as are those US companies that supplied to it.

As for Huawei, not just the US but others should be notified of the major security flaws they have introduced into their network using a cheap but clearly inferior product. This is a fault of the industry and the security regulation organization as much as it is Huawei's. The US government should have never had to get involved given the glaring security flaws in their products.

Susan Miller 5 years ago Member's comment

How can you be so sure that #Huawai's security flaws are innocent errors? I used to be that naive, but more and more I'm learning that powerful companies abuse their power for their own profit, at users expenses.

For example, you may recall years ago #Google's mapping vehicles "accidentally" hacked in to people's networks and stole their data. It recently came out, as per Bloomberg, CNN, and others, that this was not an accident, but was done intentionally: www.cnn.com/.../index.html

If $GOOG could do somethign so nefarious, why not Huawai?

Cents For Sense 5 years ago Contributor's comment

That's crazy!