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Trump calls blacklisted Huawei a national security threat and says he doesn't want to do business with it 'at all' in an apparent policy flip

Huawei

  • President Donald Trump on Sunday said he doesn't want to do business "at all" with Huawei because it poses a national security threat, an apparent u-turn on a previous softening of approach to the Chinese tech giant.
  • The US Department of Commerce added Huawei to a trade blacklist in May, which prevented the company from buying important parts and components from American companies without US government approval.
  • It announced days later that it would give a 90-day reprieve on the ban and grant temporary exceptions to Huawei. 
  • According to Reuters, the Department of Commerce was expected to extend its grace period for Huawei that would allow it to buy parts from US companies for an extra 90 days.
  • But Trump told reporters on Sunday that it was likely the US would halt business with Huawei at this point in time.  
  • Trump's statements on Huawei appear to contrast recent moves taken by the Trump administration to encourage trade between American tech companies and Huawei, which has found itself in the center of trade war negotiations between China and the US.
  • Visit Business Insider's home page for more stories.

President Donald Trump on Sunday said he doesn't want to do business "at all" with Huawei because it poses a national security threat, as US companies await a decision by the Department of Commerce on whether they can continue to sell technology to the Chinese telecommunications giant. 

Trump told reporters before he boarded Air Force One in New Jersey on Sunday that it was likely the US would halt business with Huawei at this point in time. 

"At this moment it looks much more like we're not going to do business," Trump said.

"I don't want to do business at all because it is a national security threat and I really believe that the media has covered it a little bit differently than that."

U.S. President Donald Trump speaks to reporters before boarding Air Force One at Morristown Municipal Airport in Morristown, New Jersey U.S. August 15, 2019. REUTERS/Jonathan Ernst

The US Department of Commerce added Huawei to a trade blacklist in May, which prevented the company from buying important parts and components from American companies without US government approval. It announced days later that it would give a 90-day reprieve on the ban and grant temporary exceptions to Huawei. 

The 90-day grace period is set to expire on Monday. 

According to Reuters, the Department of Commerce was expected to extend its reprieve for Huawei that would allow it to buy parts from US companies. Two sources familiar with the situation told Reuters on Friday that a "temporary general license" would be extended to Huawei for an additional 90 days. 

Read more: Intel says it's been selling tech to Huawei as the US eases up on the Chinese company

Trump did not mention in his comments to press whether the grace period for Huawei would be renewed. 

"We'll see what happens. I'm making a decision tomorrow," he added.

Trump's statements on Huawei appear in contrast to recent moves taken by his administration to encourage trade between American tech companies and Huawei, which has found itself in the center of trade war negotiations between China and the US.

After meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in June, President Trump said that US firms can resume selling equipment to Huawei.

"US companies can sell their equipment to Huawei ... there's no great, national emergency problem," Trump told reporters after his meeting. 

Read more: Huawei technicians have been helping governments in Uganda and Zambia spy on their political opponents, a new report says

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President Trump also recently met with leaders from US tech giants like Google, Cisco, Intel, Qualcomm, Micron, Broadcom, and Western Digital Corporation to discuss national security restrictions against sales to Huawei.

And last month, Commerce Secretary Wilbur Ross announced an easing of restrictions against the Chinese company in line with Trump's statements after the G20 summit.

Ross stated that the US would issue licenses to US companies looking to sell to Huawei as long as it does not pose a threat to national security, though the company remains on the US trade blacklist.

Read more: Huawei's US chief security officer says he's been called a traitor for defending the Chinese tech giant. But he says his goal is to 'promote a safer cyberspace'

It now appears that US officials have been delaying a decision on whether to grant those licenses to US companies in response to China's announcement last week that it will halt imports of US agricultural goods.

The move came alongside threats of additional tariffs on US agricultural produce.

China's announcement was part of a series of tit-for-tat moves made as trade talks between the world's largest economies begin to stumble. Earlier this month, Trump said the US would expand tariffs to virtually all imports from China starting on September 1.

SEE ALSO: Trump administration reportedly delays deciding whether to let US companies resume selling to Huawei

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