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The Trump administration was about to offer a new reprieve to US companies that were selling to Huawei, easing tensions with Beijing after the rapid escalation of the trade war between countries this month.
According to sources familiar with the matter, the US Department of Commerce was preparing to extend for 90 days a temporary general license allowing companies to do business with Huawei. An announcement is expected Monday. The final details of the extension were not yet resolved, so the announcement could be subject to changes that could prevent the general renewal of the announcement. The Commerce Department declined to comment.
The decision to allow more time for Huawei's dealings with US companies will likely be interpreted as an olive branch linking Washington to Beijing, as they attempt to put trade negotiations back on track after several trying weeks that shook the markets and raised concerns about globalization. economic downturn.
Donald Trump, the US president, announced earlier this month that he would impose a new set of tariffs on imports from China starting September 1st. Its finance ministry has officially labeled China as a money manipulator, sparking anger and promises of retribution from China. At the same time, the US government approved a sale of fighter aircraft to Taiwan in the amount of 8 billion, which could put even more angry Beijing.
Still, Mr Trump has shown signs of concern over the economic impact of the trade war with China as he heads for the 2020 re-election campaign. Last week he had announced that it would delay until December the imminent imposition of taxes on a large part of Chinese imports in order to protect the Christmas shopping season from its effects. He also softened his speeches with regard to China, saying that he would "soon" have a call with Xi Jinping, the Chinese president, and that he was expecting that the commercial war is "quite short".
The extension of the respite on Huawei – reported for the first time by Reuters – is a victory for the business world, which has insisted a lot on getting more flexibility vis-à-vis Chinese society.
The Trump administration placed Huawei on an export blacklist managed by the Commerce Department in May after a series of crucial trade talks with China that broke down acrimoniously. US authorities have accused Huawei of being a threat to national security, a violation of US sanctions and a spy vehicle.
But US technology companies, including Google, whose Android operating system is being used by Huawei, have quickly claimed some leeway to face the ban, saying their business, their customers and even security United States would be seriously disturbed.
The extension of the license is a middle ground between the full implementation of the ban, which China pleads in Washington and its ban, and its total expiration. Mr Trump suggested that the search for a solution to Huawei could be part of any comprehensive deal with China on trade.
"In a lot of ways, it's not going to be long, it's not a long-term solution," said Samm Sacks, a researcher on cybersecurity and digital economy policy in China at the New America Foundation. "Many in Washington want to kill the company. Others want to use it as leverage. You can not have both, "she added.
Senior US and Chinese officials are expected to have face-to-face talks in Washington in early September hoping to get a better result than Shanghai last month, prompting Trump to complain. because Beijing would not stay. by his promises and move to impose the new series of tariffs. However, there is no clear timetable for next month's negotiations.
Trump administration officials linked leniency to Huawei with Chinese purchases of US agricultural products. Observers of the trade war will therefore closely monitor whether Beijing will respond by relaunching its purchases of US agricultural products in the coming days.
A three-month extension of the Huawei license would impose a new deadline in mid-November, around the time of the Asia-Pacific Economic Cooperation Summit in Chile, which could provide a new opportunity for MM. Xi and Trump to meet. In the course of the trade war, the two presidents made use of international meetings, notably at the G20 summit last December in Argentina and at the June G20 summit in Japan, to try to revive the chances of an agreement.
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