President Donald Trump has been negotiating with Chinese President Xi Jinping and has decided to suspend or pause any new tariffs on Chinese goods. Xi is seeking to resolve the trade issues involved between the United States and China, particularly those involving Chinese company Huawei and the sale of US technologies. This is a significant event, as the President is utilizing a prohibition and restriction that was originally put in place due to national security concerns against Huawei. Now, these sanctions are being utilized as a bargaining chip in trade talks.

Potential Impact of Removing Huawei Sanctions

If Huawei sanctions are removed, then US companies who have previously engaged in sales of different technologies to Huawei will have new compliance concerns. Trump is suggesting that Huawei could be removed and US companies could resume selling technologies to Huawei, so long as there are no national security issues involved.

Although the law currently has not changed, there is a possibility that Congress can get involved with any removal or softening of restrictions on Huawei. Huawei has taken a financial and business hit due to the placement on the entity list. US companies should be advised in ensuring compliance with US sanctions as per control laws and any dealings with large Chinese tech companies, particularly Huawei.

Trade Talks Continue

The recent trade talks are premised upon the changes in tariff schedules against the importation of Chinese goods into the United States. China has also implemented levy tariffs on the importation of US goods into China, and this trade war has cost US farmers and consumers a significant amount of money. A resolution of this trade war may help both parties involved.