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Trump reversal on China-based Huawei a shocking move




On Monday, CNBC's Jim Cramer speculated that it might be something for President Donald Trump to have eased restrictions on Huawei while the United States and China reengaged in negotiations to end their trade war.

As part of Saturday's trading weapon with Chinese President Xi Jinping at the G-20 Summit in Japan, Trump agreed to allow Chinese tech giant Huawei to buy some US commercial products.

Not even two months ago, Trump administration blacklisted Huawei from doing business in the US, referring to national security issues.

"For the president to turn this around, it must have meant something is in order," Cramer said at "Squawk on the Street." "Much bigger than anyone realizes," he added.

People who do not believe something that is "in the first place," said Cramer, think "the president had gotten."

"The president felt very" had "after Buenos Aires," Cramer said, referring to the G20 Argentina summit in December, when the two leaders had agreed on a 90-day tariff escalation truce. "It's hard for me to think he's going to get this time."

Cramer said there had been a strong belief that Trump would add additional tariffs to Chinese goods after Saturday's meeting with Xi and continue to restrict US companies from selling to Huawei.

"The President's people are shocked," Cramer added. "It was both the concessions and the journey to North Korea," he said of the impromptu trip to meet the leader Kim Jong Un.

But the top white house economic advisor Larry Kudlow defended Trump's Huawei movement on Sunday, and the added blacklist was still in place.

"This is not a general amnesty," Kudlow said in an interview with Fox News. "Huawei will remain on the so-called entity list where there is serious export control and in national security skills or proposals there will be no licenses."



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