Bob Davis

Seeking to blunt the dominance by China’s Huawei, the White House is working with US technology companies to create advanced software for next-generation 5G telecommunications networks. The plan would build on efforts by some US telecom and technology companies to agree on common engineering standards that would allow 5G software developers to run code atop machines that come from nearly any hardware manufacturer. That would reduce, if not eliminate, reliance on Huawei equipment. Microsoft, Dell, and AT&T are part of the effort, White House Economic Adviser Larry Kudlow said.

The Commerce Department’s efforts to tighten the noose on Huawei is facing a formidable obstacle: the Pentagon. Apparently, Commerce Dept officials have withdrawn proposed regulations making it harder for US companies to sell to Huawei from their overseas facilities following objections from the Defense Department as well as the Treasury Department.

President Donald Trump and Chinese President Xi Jinping agreed to a cease-fire on trade that will remove some curbs on Huawei buying high-tech equipment from the US, for the moment lifting one cloud over the global economy. Under the cease-fire, the US agreed to put off additional tariffs on Chinese goods indefinitely. In response, China will start buying large amounts of American farm products, President Trump said.

Apparently, the US and China have agreed on the broad outline of a deal that would save imperiled Chinese telecom giant ZTE as the two sides move closer to resolving their trade dispute. The Trump administration would remove the ban on US companies selling components and software to ZTE, a penalty that has threatened to put the company out of business. Instead, ZTE would be forced to make big changes in management, board seats and possibly pay significant fines. Beijing has also offered to remove tariffs on billions of dollars of US farm products as part of the negotiations.