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Trump announces ban on US government agencies doing business with Huawei will continue

FILE PHOTO: U.S. President Donald Trump speaks to reporters as he departs on travel to Dayton, Ohio and El Paso, Texas following back-to-back mass shootings in the cities, on the South Lawn of the White House in Washington, U.S., August 7, 2019. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: U.S. President Trump departs on travel to visit mass shooting sites in Ohio and Texas at the White House in Washington Reuters

  • President Trump told reporters on Friday that the US won't be doing business with Huawei, according to Bloomberg. 
  • The White House later clarified that Trump was referring specifically to the ban of US government agencies using Huawei technology or products. 
  • This ban has already been in effect since January 2018.
  • The announcement came amid China's refusal to buy US agricultural goods, which is said to be China's retaliation to the tariffs that Trump announced on remaining imports from China. 
  • On Friday, Huawei also announced its own "Harmony" operating system to power its mobile devices should the US continue to bar the company from using Google's Android operating system.
  • Visit Business Insider's homepage for more stories.
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"We're not going to be doing business with Huawei," President Donald Trump told reporters on Friday, according to Bloomberg. 

The White House later clarified that Trump was referring specifically to the ban onUS government agencies using Huawei technology or products. This ban was already in effect since January 2018 with a provision in a law known as the The National Defense Authorization Act, which prohibits the use of equipment or services explicitly from Huawei to any federal agencies or their contractors.

 

Huawei remains on the entity list, which prohibits US agencies and companies from buying Huawei telecoms products without express permission from the US government.

Huawei's position on the entity list severly affects Huawei's mobile and computer hardware business that runs on US software, like Google's Android and Microsoft's Windows. Without Google's and Microsoft's software, Huawei devices are at a huge disadvantage.

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Trump's statement came amid China's refusal to buy US agricultural goods — a move that's said to be in retaliation of Trump's tariffs on imports from China.

The US is also reportedly delaying US companies from doing business with Huawei, according to a Bloomberg report. 

On Monday, China allowed its currency to devalue against the US dollar, which some are saying is a move in a "currency war." The United States officially labeled China a "currency manipulator" in response.

Huawei announcement on Friday its home-grown Harmony operating system that's designed to power its mobile devices should the company continue to be barred from using Google's Android operating system.

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It's been almost three months since the US first announced that Huawei had been placed on an "entity list" in May, which banned US companies form doing business with Huawei. Since then, the status of Huawei's trade blacklist status has been uncertain. In June, Trump contradicted the US Commerce Department's trade blacklist by announcing that US companies could continue to do business with Huawei. Trump's announcement Friday is simply reiterating the January 2018 ban on Huawei technology and devices for US federal governenment agencies and employees. 

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