Jul 1, 2019

Trump to allow U.S. companies to sell some parts to Huawei

President Trump shaking hands with Chinese President Xi Jinping at the G20 summit in Japan. Photo: Sheng Jiapeng/China News Service/VCG via Getty Images

President Trump, as part of a broader pause in tensions with China, said Sunday that U.S. companies can continue to sell parts to embattled telecom firm Huawei, provided there are no national security concerns specific to those products.

Why it matters: While many of the concerns were around Huawei's networking business, U.S. sanctions were also threatening the viability of the company's smartphone business too, given its reliance on chips and software from the U.S.

Between the lines: It's not clear just how much a reprieve Trump is granting, nor how long it will last. A White House official said Sunday that the exemption will cover only widely available goods.

What they're saying:

  • Sen. Mark Warner said he wants to see the details "but we need to remember that Huawei represents a threat to our national security. Allowing Huawei to participate in building our next generation communications networks should be unacceptable for everyone. If the President's deal goes too far, Congress would certainly act to reverse it."
  • Sen. Lindsey Graham, on "Meet the Press," said: “There will be a lot of pushback if it is a major concession,” to Huawei.

Our thought bubble: Conflating a trade dispute and national security concerns is a dangerous game.

Go deeper: Why Huawei is the United States' 5G boogeyman

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 7 a.m. ET: 607,965 — Total deaths: 28,125 — Total recoveries: 132,688.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 7 a.m. ET: 104,837 — Total deaths: 1,711 — Total recoveries: 894.
  3. Federal government latest: President Trump signed the $2 trillion coronavirus stimulus bill to provide businesses and U.S. workers economic relief.
  4. State updates: North Carolina is latest state to issue stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month.
  5. World updates: Italy reported 969 coronavirus deaths on Friday, the country's deadliest day.
  6. Business latest: President Trump authorized the use of the Defense Production Act to direct General Motors to build ventilators for those affected by COVID-19. White House trade adviser Peter Navarro has been appointed to enforce the act.
  7. 🏰 1 Disney thing: Both Disney World and Disneyland theme parks in the U.S. are closed until further notice.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancing.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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