Breakingviews - Isolated Huawei may be shoved into Beijing’s arms

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Breakingviews - Isolated Huawei may be shoved into Beijing’s arms
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(Reuters Breakingviews) - A U.S. blacklist could wind up thrusting Huawei Techno...

FILE PHOTO: A scratched surface Huawei logo is seen on a smarthphone in this illustration picture taken May 20, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

President Donald Trump has signalled he might give Huawei a pass in exchange for broader trade concessions from his Chinese counterpart, Xi Jinping. State-owned rival ZTE, similarly embargoed in 2018, was let off the hook as a pre-condition to talks. Damage has already been done to Huawei, though. The significance of U.S.-sourced intellectual property throughout the supply chain and a laundry list of overseas partners, suppliers and customers has been revealed.

Huawei has cash to cope, with some $39 billion of it on the balance sheet at the end of last year. That should keep bondholders relatively calm for now, but absent a U.S. policy reversal things are bound to deteriorate.

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