The U.S. Commerce Department is mulling the extension of a license for Huawei, that would allow the Chinese telecoms giant to continue working with American companies. Monday marks the end of the 90-day reprieve Huawei first got. CGTN’s Toby Muse reports.
The fate of telecom giant Huawei’s ability to purchase U.S. components come Monday is unclear — as President Donald Trump gave conflicting answers when asked by reporters what action his administration will take.
At first, Trump contradicted news reports that a 90-day extension to Huawei’s license to purchase American parts would be forthcoming, saying: “Huawei is a company we may not do business with at all. And it was reported I think the opposite today — I was surprised — that we are open to doing business. We’re actually open to NOT doing business with them.”
Later, in the same exchange with reporters, the president changed his answer, suggesting the decision on granting an extension to Huawei beyond Monday’s deadline is still open.
“We’ll see what happens. I’m making a decision tomorrow. It could be temporary, it could be, maybe not.” Trump added.
The U.S. first moved to block Huawei from buying U.S. parts back in May – claiming the company poses a threat to national security, something the company denies.
In 2018, Huawei purchased some $11 billion worth of components from U.S. companies.
Huawei’s fate has been a part of the ongoing trade war between the world’s two largest economies.
The U.S. insists that Americans are not being hurt by the trade war, insisting that China is feeling it more.
“There’s no evidence whatsoever that American consumers are bearing any of this. / But I can tell you this, this president is committed to standing up to China and getting a good deal for the American people. And he will continue to do what needs to be done,” White House Trade Adviser Peter Navarro said.
The White House said negotiators from the two sides would speak over the phone within the next ten days. If the talks advance, Chinese negotiators would come to the U.S. to keep talking.
Now the trade war is occurring amid increasing fears of an economic slowdown in the U.S. and around the world which could lead to a recession.
The stock markets zig-zagged over the past week on fears of a recession.
The trade war has also become part of the U.S. presidential election campaign, with two Democratic candidates on Sunday publicly criticizing Trump’s handling of the trade negotiations.