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US President Donald Trump agreed to an industry request that the Commerce Department provide “timely licensing decisions” on sales to Huawei. Photo: Reuters

Politico | Donald Trump huddles with tech CEOs as White House vacillates on Huawei

  • Trump agreed to industry request that Commerce Department provide ‘timely licensing decisions’ on sales to Huawei
  • US president’s feints at easing up on Chinese telecom giant have drawn ire of China hawks
POLITICO

This story is published in a content partnership with POLITICO. It was originally reported by Steven Overly on politico.com on July 22, 2019.

US President Donald Trump huddled with the chief executives of seven technology companies, including Google CEO Sundar Pichai, at the White House on Monday as his administration delivers wildly mixed messages on Chinese telecom company Huawei amid preparations for the next round of trade talks with China.

National Economic Council Director Larry Kudlow convened the meeting to discuss a range of economic issues, but the guest list was entirely composed of semiconductor and software companies that count Huawei, the world’s largest telecom equipment maker, as one of their customers.

The president agreed during the meeting to an industry request that the Commerce Department provide “timely licensing decisions” on sales to Huawei, White House spokesperson Judd Deere said. Trump’s Commerce Department in May added Huawei to a trade blacklist, requiring US companies to get a special licence before they can do business with the telecom titan.

Under the terms of the trade blacklist, that licence comes with the presumption of denial, meaning it's normally all but impossible to obtain. Trump, however, has suggested the possibility of easing restrictions on Huawei as a concession to Beijing amid efforts to navigate the ongoing trade war with China. He most recently said some sales to the company could resume after he met with Chinese President Xi Jinping in Japan last month.

The group that convened on Monday also discussed job numbers, international trade issues and 5G technology, Deere said.

Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and US Trade Representative Robert Lighthizer also attended, a source familiar with the meeting told POLITICO. The CEOs of Intel, Cisco, Qualcomm, Broadcom, Micron and Western Digital rounded out the guest list.

Trump’s feints at easing up on Huawei have drawn the ire of China hawks in both parties who fear the president could choose a trade deal over national security. Policymakers have long been concerned the company is in cahoots with the Chinese government. Indeed, a bipartisan group of senators introduced legislation last week that would prevent Trump from removing Huawei from the trade blacklist until security concerns have been addressed.

Two-thirds of Canadians ‘reject closer ties to China and want Huawei ban’

Meanwhile, companies have been stuck in trade limbo.

Huawei is a major buyer of semiconductors and software produced by US companies, and some of them have warned that losing the company as a customer would take a serious toll on their bottom lines. Broadcom, for instance, reported in June that it expects annual sales to drop US$2 billion as a result of the ban.

Companies have sought more clarity from the administration on what technology is restricted, and have already resumed some sales.

Huawei is a major buyer of semiconductors and software produced by US companies. Photo: Bloomberg
Huawei has also pushed back on the US’s efforts to contain its business. In March, the company sued the federal government, arguing that Congress acted unconstitutionally when it passed a law last year banning federal agencies and their contractors from buying Huawei equipment.

The company’s reclusive founder, Ren Zhengfei, has denied ties to the Chinese government in several media interviews. His stepped-up defence of the company came after the Justice Department filed charges against the firm and its chief financial officer, Meng Wanzhou, over allegations of fraud, obstruction of justice and sanctions violations. Meng, who now faces extradition from Canada to the US, is Ren’s daughter.

Adam Behsudi contributed to this report

https://www.politico.com/story/2019/07/22/trump-technology-huawei-china-1610306

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