The political decisions made by presidents have an impact on the performance of the entire economic and social life of their countries. The most recent example of this truth was demonstrated with the lifting of some of the sanctions imposed on the Chinese company Huawei by the United States. At least 24 legal charges were filed by U.S. authorities, following a report that concluded that the telecommunications company used its technology networks for espionage.
The meeting held between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, during the G20 Summit cooled a bit the trade tensions initiated in July 2018 between the two countries. Almost a year later, the dialogue between the leaders signified a truce in the dispute they have been engaged in.
In this respect, they agreed to resume trade negotiations The decision to suspend this transaction was taken a month ago, putting at stake the fate and image of the company by not being able to access Android system updates for its smart devices. The decision to suspend this transaction was taken a month ago, putting at stake the fate and image of the company by not being able to access Android system updates for its smart devices. Some specialists qualify this measure as an attempt by the United States to stop the growth of the Chinese telecommunications giant.
Similarly, although additional trade sanctions had previously been lifted against ChinaThe U.S. president assured that for the time being no tariffs would be added on Chinese imports valued at 300 billion dollars. Although these resolutions do not mean the end of the trade war, it is a new space for negotiation between the two economic powers.
The situation generated between China and the United States has affected investment plans and business confidence. in the eastern nation. It has also had repercussions on the North American market as Huawei brand consumers were going to have to invest more resources to afford the service.In a press conference after the G -20, Trump stated that the need to support his country's companies was the reason why he made the decision to ease restrictions on the Chinese company. In his speech he also assured that Huawei's situation will be resolved at the final moment of the trade negotiations.
For his part, Huawei's founder and executive chairman, Ren Zhengfei, warned that the lifting of sanctions will not have a major influence on the company's production, as he assures that they are working on the development of the necessary technology to achieve independence from the North American country in this area.
USA and China: the origin of the conflict
The United States has been investigating links between Huawei and the Chinese government since 2012. The report presented by the US House Intelligence Committee concluded that the company uses its technology networks for espionage. The results of this investigation have caused telephone companies in other parts of the world to veto their contracts with Huawei.
In early 2019 the U.S. filed criminal charges against Chinese telephonyThe company was accused of circumventing U.S. sanctions against Iran. This situation led to the imprisonment of the chief financial officer of Huawei in Canada, Meng Wanzhou. Following this action, at least 24 criminal charges were filed against the company, with one of the major grounds for prosecution being intellectual property crime, alleging that Huawei stole T-Mobile's patented phone testing technology, known as Tappy, for years.
To conclude, we note that one of the arguments of the team that represented the Asian giant, was the violation of the right to defense. By virtue of the confidentiality of the proceedings -means of evidence- with which the US authorities argued the sanctions in a generic way. This should call for reflection, since the lack of transparency in the proceedings put at stake not only the credit system and image of a multinational, but even the freedom of its representatives. We believe that this should not be allowed by the international community, even if they are imposed by an office of the executive power of a country or by intergovernmental groups, whose members generally obey the internal policies of the countries they represent.
At the time of publication of this article, President Donald Trump announces new tariffs on Chinese imports. More information here.
