Huawei Still At A Disadvantage After US-China Trade War Talks Resume

The U.S.-China trade discussions have resumed, and Huawei is still getting the short end of the deals. The new tariffs between China and U.S. imports could greatly hurt Huawei’s business in the long run. Previously, President Donald Trump had pledged to help out Huawei in reaching a a more suitable deal.

Huawei is still in a bad spot with the U.S.-China trade conflict as the discussion continues, according to a report from CNN. Apparently, the rulings veer away from providing an easier situation for Huawei. The talks seem to be geared toward adding tariffs on deals made between companies based in U.S. and China.

Apparently, the talks are leaning toward more tariffs that will make it cost more to sell to or outright ban U.S. companies from selling to Huawei. The ban prohibits U.S. companies from directly doing business with Huawei. For U.S. companies to deal with Huawei, they’ll need a permit which allows them to do so.

Huawei is one of the world's leading smartphone manufacturers, and it’s advantageous for tech firms to sell and partner up with it. However, the impending tariffs and permit payments will up the cost of the partnership of these companies.

The current situation puts Huawei at a huge disadvantage. Huawei founder Ren Zhengfei has confirmed that the company’s overseas sales have plummeted by 40 percent.

Even so, the company is still experiencing growth amid the trade ban. Huawei is the leading smartphone company when it comes to adopting the 5G, a mobile data technology which allows phones to connect to the internet through its own hardware without the need for a wi-fi connection. Mobile data services are often sold as a subscription service which allows customers to use it for months.

Despite the trade ban, Huawei has also working on other projects over the past months. Huawei is planning to release their foldable Mate X by September this year. This device will rival the Samsung Galaxy Fold, which will reportedly be released in the same month. With the ban and tariffs around, Huawei will have to think of something to help it recover its U.S. audience or find something as big.