Huawei U.S. - China Trade War

What is Huawei???

It is a china based tech champion company which sells telecom equipments and smartphones across the globe.

Headquarters of this company are located in China's southern coast City of Shenzhen. Ren Zhengfei is the founder of Huawei, who is a noted figure in China's business world. He is a self made billionare.

Why Huawei is banned in USA and other countries???

Huawei is seen as a national threat to US as they fear about its association with China's government officials and communist party of China and even the military. This has been of particular concern when it comes to networking gear and the possibility for breaches of data privacy.

The US intelligence officials even warned their people to not to purchase any Huawei devices as they could be used as to spy on the users. This Chinese smartphone making company was entering US country through the mobile network AT&T but at the last moment, this deal was cancelled.

The US in August enacted the National Defence Authorisation Act to ban the government’s use of Huawei and ZTE technology products and services on concerns over their connections with Chinese intelligence.

Now president Donald Trump's administration has added the company to the trade Blacklist .
This company is now restricted from buying different parts and services without a proper permission and approval. This is affecting the company's access to top companies including Qualcomm and Google.

This move resulted in heightening tensions between US china trade relations and hence resulted in the trade war.

Donald Trump on 10th of may 2019, signaled the end of formal negotiations, hiking tariff(taxes) on 200 billion dollars of Chinese imports by 15% which was raised from 10% to 25%. China, on 1st June 2019 raised tariff on 60 billion dollars of American goods and accused USA for engaging in "naked economic terrorism."