The Trump administration will loosen sanctions on Huawei, allowing a select number of US businesses to re-open trade deals with the company.
President Trump made the decision to lift restrictions on the Chinese smartphone manufacturer in a meeting last week, according to the New York Times. The new licenses will permit certain American businesses to supply non-sensitive goods to Huawei.
This is a big deal considering American companies like Google are key suppliers for Huawei, its previous smartphones having relied heavily on the company’s Android software.
Google initially made the decision to suspend any business that “requires the transfer of hardware, software and technical services except those publicly available via open source licensing,” with Huawei last month after the White House issued an executive order back in May.
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The ban – known as the “Executive Order on Securing the Information and Communications Technology and Services Supply Chain” – was introduced in response to fears that Huawei tech was being used to spy on the US by the Chinese government.
The restrictions have had a significant impact on Huawei’s business overseas, including in the US and the UK. Just last month, Huawei unveiled the Mate 30 running an open source edition of the Android and the limited access to Google apps and services became a huge point of contention for loyal Huawei fans who rely on Google apps every day of their life.
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Likewise, Huawei is a crucial player when it comes to 5G development in the US, causing tensions to rise even higher as both countries rely on each other for key tech advancements.
The US and China are set to resume trade talks later this week so this temporary reprieve could be the olive branch the two countries need to further loosen the sanctions and to allow Huawei back onto the Android platform.