A reprieve in name only: Trump’s Huawei moves leave US tech companies confused
- Delaying a ban while adding more Huawei entities to the blacklist ‘reflects a schizophrenic approach to China trade relations’
- The episode reminds US tech companies of a much broader problem: in this environment, how to do business with China
On August 19, the US extended a deadline allowing American tech suppliers to sell components to Chinese telecommunications giant Huawei for another 90 days. Since then, though, the much-anticipated reprieve has provided more confusion than clarity.
As part of the extension, the Commerce Department added 46 more Huawei subsidiaries to its blacklist, affecting more US businesses once the new deadline arrives in November.
“The decision to extend the time period, while at the same time adding a large number of new Huawei entities to the export ban, reflects a schizophrenic approach to China trade relations,” said Judith Lee, co-chair of the law firm Gibson Dunn’s international trade practice.
“This brings more uncertainty and is very bad for US companies,” added Lee.
The announcement was only the latest example of the Trump administration’s unpredictable approach in its policymaking towards China. In the days that have followed, the policy served as a reminder of a much broader problem facing US tech companies: how to do business with Chinese tech companies overall.