White House economic aide Larry Kudlow has shattered expectations of a speedy resolution of the US-China trade dispute that culminated in Huawei and its affiliates being added to a blacklist a month ago, noting that President Trump’s recent decision to slightly ease the restriction by allowing in part to sell components to the Chinese telecom company is “not a general amnesty.”
"Huawei will remain on the so-called Entity’s List, where there are serious export controls and in any national security instances or suggestions there won’t be any licenses, but having said that, I think that all that’s going to happen is the commerce department will grant some temporary additional licenses where there’s a general availability," he said.
The aide pointed out that the chronic nature of the trade spat between the two top economies means the US administration will by no means leap in a rush at any concrete deal but will continue negotiations “for quite some time,” Kudlow rounded off.
President Trump announced Saturday that US suppliers will be permitted to sell components and spare parts to Chinese telecom giant Huawei following talks with Chinese President Xi Jinping at the G20 gathering in the Japanese city of Osaka.
“U.S. companies can sell their equipment to Huawei,” Trump said at a news conference. “We’re talking about equipment where there’s no great national security problem with it.”
Trump went on to declare that ties with China were “right back on track” after he spoke to his Chinese counterpart Xi Jinping in a bid to talk through the de-escalation of the ongoing trade war, remarking that fresh tariffs had been put on hold for the time being.
The crackdwn on Huawei came amid the long-standing, year-long dispute between the US and China on a number of trade issues, with the US having previously stated there is no fair play when it comes to the level of tariffs imposed on American goods when they are exported to China.
The US expressed concerns that Huawei, the world's largest telecom equipment manufacturer, is assisting Beijing in its effort to steal commercial secrets and harvest personal data – allegations that both Huawei and Chinese authorities have repeatedly rejected. The Trump administration has blocked government contractors from using Huawei gear and likewise prohibited the Chinese firm from buying US-made equipment, including chips.