Huawei Gets A Break Apart From The Canberra Raiders Win
Huawei has finally got a lucky break, apart from the Canberra Raiders, a Huawei sponsored team, getting themselves into the NRL top three on the ladder, Washington has thrown the besieged smartphone maker an extension to a 90 day ban.
The US administration is prepared to give Huawei an extension to its 90-day licence to do business in the US, a significant development which the Chinese phone maker is hoping will be permanent.
As reported last week in CDN, the deadline for the licence expiring was today (August 19), and was a potential trigger point for a full-blown trade war with China that would could have plunged the global economy in to a major recession.
However, US regulators have eased the tension by signalling that they are prepared to grant Huawei another reprieve. This would allow talks between US and Chinese trade officials to carry into next week and signal that the US is prepared to negotiate an outcome.
The move comes after President Trump met over the weekend with executives from major US banks, who expressed concerns that the US economy has been taking the brunt of the trade dispute.
Last week, Wall Street stocks plunged to their fourth lowest ever level, as China lowered its currency and the US Reserve Bank released indicators of an inevitable economic downturn unless the trade dispute is resolved.
An extension to Huawei’s licence would renew an agreement allowing the Chinese company to maintain existing telecommunications networks and provide software updates to Huawei handsets.
The licence has become a key bargaining chip for the US trade negotiations with China, but White House officials warn events remain fluid and could change.
President Trump and Chinese President Xi Jinping were expected to discuss Huawei in a call over the weekend.
Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licences. More than 50 Huawei suppliers, including Qualcomm, Intel and Micron Technology, have requested the special licences to sell to Huawei.
The licence reprieve is good news for Wall Street which saw technology stocks retrieve some, but not all, of the losses from last week.
Chipmaker Nvidia’s stock jumped more than 7 percent after it reported better-than-expected Q2 earnings, while Apple shares gained 2.36 percent as investors bought back stocks beaten down by trade war fears.