Daily Management Review

Huawei, ZTE Equipment Could Be Banned In US By New Executive Order Under Consideration Of Trump: Reuters


Huawei, ZTE Equipment Could Be Banned In US By New Executive Order Under Consideration Of Trump: Reuters
U.S. companies are being contemplated of being barred from using telecommunications equipment made by China’s Huawei and ZTE by President Donald Trump, according to a Reuters report.
The report based on government sources, further states that Trump is considering passing an executive order to this end in the new year which would also declare to declare a national emergency that would allow him to impose the ban.
If this move is implemented, it would be the latest measure to cut off the US market for the two biggest network equipment companies Huawei Technologies Cos Ltd and ZTE Corp, by the Trump administration. According to allegations by the US, the two companies are very close to the various Chinese agencies and the telecom equipment supplied by them could be used by China to spy on Americans.
The report quotes sources from the telecoms industry and the administration saying that it has been more than eight months that the Trump administration has been considering the implementation of the executive order. The sources also said that the executive order could be issued as early as January and would empower the Commerce Department to issue orders to completely stop US companies from buying equipment from foreign telecommunications makers which the US government considers to be posing significant threat to the national security of the country.
Sources however have also said that the executive order would not, in all likelihood, name Huawei or ZTE but the order would be interpreted by the Commerce department as a form of authorization to restrict equipment supplied by the two companies from being used in the US.
The International Emergency Economic Powers Act would be invoked by the executive order. That act hands over power to the president of the country to regulate commerce in light of a national emergency situation that seeks to threaten the United States.
Given the current situation where U.S. wireless carriers are seeking for partners for the purpose of setting up of the next generation 5G wireless networks in the country, this issue assumes greater importance.
In August, the US government also passed a defense policy bill which disallowed purchase of equipment form Huawei and ZTE by the U.S. government itself.
She did not want to comment on the order as it had not been officially confirmed, said China’s Foreign Ministry Spokeswoman Hua Chunying.
“It’s best to let facts speak for themselves when it comes to security problems,” Hua said.
“Some countries have, without any evidence, and making use of national security, tacitly assumed crimes to politicize, and even obstruct and restrict, normal technology exchange activities,” she added. “This in reality is undoubtedly shutting oneself off, rather than being the door to openness, progress and fairness.”
There were also no comments from Huawei and ZTE. But on previous occasions, both the companies have vehemently denied allegations that their products are used for espionage.,
The news that the Trump administration was considering the executive order was first reported in the Wall Street Journal first reported in early May.