Trade war is still going on, and there are tons of US companies which are supporting it by avoiding trading with Chinese companies, but that’s costing them billions of dollars. Recent reports show that soon US tech companies, especially chip making, might resume their contract with Chinese tech giant Huawei. Huawei is that Chinese company which got banned from trump administration for making any trade. But now Qualcomm, Intel and Micron technology which produces electronic chips might sign a trade deal with Huawei which in 2018 bought goods worth of $11 billion.
Most of the sales with Huawei had banned in May by the US government, but Commerce Secretary Wilbur Ross said trade agreement would be resumed where it’s necessary. The trade ban which was imposed by trump on Huawei in May is continuing, and it’s profoundly affecting the company’s growth. Both China and the USA are trying to resolve this issue but because of disagreement over some subjects countries are not signing any trade agreement.
Huawei is one of the largest buyers of electronic chips, and it has continually got its supply from US-based tech companies. However, the US government has allegedly said that the Chinese government controls Huawei and there’s security threat also. Because of which all chip-making companies had stopped supply to Chinese tech giant Huawei. Huawei spokesperson said that the company had found no guilty in crimes of cyber society and that’s why US vendors should be permitted to make a trade with them.
US companies currently are under restriction of dealing with networks and software updates to Huawei gadgets. They are not allowed to supply any new goods or services to Huawei, which is creating problems for both US vendors and the Chinese company. Even though it’s not clear what terms and conditions are going to be of this contract with Huawei, it will be interesting to see how US officials are going to look over this trade deal.