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Author Topic: Huawei off the table during U.S.-China trade talks  (Read 13130 times)

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Huawei off the table during U.S.-China trade talks
« on: September 06, 2019, 06:24:12 AM »

In the middle of May, the U.S. Commerce Department put Chinese phone manufacturer Huawei on the Entity List banning it from its U.S. supply chain. While this was done for security purposes (Huawei is considered a national security threat in the U.S because it might be asked to collect intelligence by the communist Chinese government), there was some thought that it could be used as a bargaining chip during trade talks between the U.S. and China.

Both countries are embroiled in a trade war and have imposed tariffs on imports from each other. For example, starting at the beginning of this month, a number of Apple devices manufactured in China, including the Apple Watch and the AirPods, are taxed at 15% when they enter the states. Starting on December 15th, a similar tax will be imposed on the iPhone. Apple can choose to absorb all or part of the tax and pass on the remainder for U.S. consumers to pay through higher prices.
Trump changes his mind; Huawei is off the table during U.S.-China trade talks

Back in May, U.S. President Donald Trump stated that Huawei's position on the Entity List could be used to help the U.S. get better terms from China in any trade talks between the two countries. "So itís possible that Huawei even would be included in some kind of a trade deal," the president said at the time. "If we made a deal, I could imagine Huawei being possibly included in some form, some part of a trade deal." But Huawei now seems to be off the table. According to Reuters, the U.S. doesn't plan on bringing up the company during recently announced trade talks with China.


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