Op-Ed: Trump says Huawei could be part of a US China trade deal

Posted May 23, 2019 by Ken Hanly
US President Donald Trump said Thursday that the giant Chinese telecommunications company Huawei could be part of a trade deal. The US put Huawei on a blacklist this month for security reasons.
President Donald Trump has effectively banned US companies from supplying Huawei and affiliates with...
President Donald Trump has effectively banned US companies from supplying Huawei and affiliates with the critical components that have helped it grow into the world's largest supplier of telecom networking equipment and second-biggest smartphone maker
Trump's statement
Trump said to reporters at the White House: “It’s possible that Huawei even would be included in some kind of a trade deal. Huawei is something that’s very dangerous. You look at what they’ve done from a security standpoint, from a military standpoint, it’s very dangerous.”
Trump gave no details of how this was possible. The Trump administration has been limiting the sale of vital US components to Chinese telecommunication equipment makers in order to keep the Chinese from having access to key technologies. The latest US ban has caused Google to revoke the license of Huawei to use its proprietary Android apps and services in their smartphones and Huawei will also not be sent updates until they are available in the publicly available version. The development is reported in a recent Digital Journal article
The Trump administration is seeking to choke off Beijing’s access to key technologies by limiting the sale of vital U.S. components to the Chinese telecommunications equipment maker over security concerns. However, if the security concerns are so serious why would Huawei be included in a trade deal? Would there be a deal that it could not operate in the US or get US parts? China would surely reject that. It seems that Huawei can be in the deal if the US gets other things it wants most likely. The US has never presented concrete evidence of Huawei spying although Trump talks of what they have done from a security and military standpoint. What have they ever done from a "military standpoint" or even a security standpoint?
US may be using Huawei blacklist as leverage for a US China trade deal
While the US has constantly emphasized security reasons and Huawei spying capabilities as grounds for blacklisting the company. The decision to curtail Huawei's access to US suppliers happened only after the trade negotiations reached an impasse. Once again it could be that the US is using its clout in terms of technological expertise as a means of forcing China into a deal. The US has used tariffs mostly so far but that has not worked. While so far the US bullying has not led to a deal it is hurting both economies and disrupting world markets and trade.
Huawei blacklist could hurt US firms
The move may certainly hurt Huawei outside of Chinese markets but as reported in the Digital Journal the Chinese have rallied behind Huawei. Companies such as Apple may find they are losing sales in a huge market.
The U.S. had held off on blacklisting Huawei out of concern the move could disrupt trade negotiations with China and only took action after the last round of trade talks hit an impasse, according to people familiar with the matter. The decision to curtail the Shenzhen-based company’s access to American suppliers unfolded quickly once trade talks broke down, the people said.
Google makes good profits from licensing its proprietary products to Huawei. They will lose revenue as a result of the decision as will other component makers such as Intel Corp. Qualcomm, and Broadcom. US firms will take a hit from the US government moves not just Huawei.
No end in sight for US China trade war
Trump increased levies on $200 billion Chinese imports from 10 percent to 25 percent China prompt retaliated with its own tariffs. China can use other means to retaliate as well such as selling US treasuries or stopping the export of rare earth metals with most world supply coming from China. Trump has threatened China with even more tariffs covering virtually all imports. At the same time Trump has said he could meet his Chinese counterpart at the meeting next month of the G20 summit taking place in Japan. However, no meetings have been agreed upon yet and China has lashed out at what it calls US bullying tactics. The end result may be to encourage China to develop its own technology even further and not purchase any US technology if possible.