US President Donald Trump has signed an executive order to allow the US federal government to legally block American companies from purchasing foreign-made telecom equipment deemed a national security risk, in a move that appears to be directed at Chinese telco Huawei.
In the executive order, Trump does not name any company specifically but appears to be the latest action in the ongoing security saga with Huawei.
The order reads that “openness must be balanced by the need to protect our country against critical national security threats.”
Huawei has been banned from building the 5G networks in the US, here in Australia, and numerous other countries after concerns were raised that the company’s products may be used by the Chinese government for surveillance.
In addition to this, the US and China are currently in the throes of an escalating trade war which may have influenced the president’s decision to sign the executive order.
The Chinese telco has released a statement in response to the US ban, warning that the country will lag behind in 5G networks made by “inferior” or “more expensive alternatives.”
The US government has continuously urged its allies to ban Huawei, who has repeatedly denied that it would engage in any espionage efforts on behalf of the Chinese government.
Huawei CEO and founder, Ren Zhengfei, has stated in the past that “There’s no way the US can crush us.”
Ren Zhengfei, CEO and founder of Huawei (AP Photo/Huawei Technologies Co.)
The US has levelled 23 charges against Huawei and its CFO, and daughter of the CEO, Meng Wanzhou including charges of violating trade sanctions with Iran and attempted theft of trade secrets.
Huawei has maintained that it is all a “political” game with no credence.
Despite the 5G saga, the company has remained profitable, reporting Q1 revenue jumped 39 per cent to 179.7 billion yuan (A$36.5 billion).
Huawei’s Full Statement:
“Huawei is the unparalleled leader in 5G.
We are ready and willing to engage with the US government and come up with effective measures to ensure product security.
Restricting Huawei from doing business in the US will not make the US more secure or stronger; instead, this will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment, and eventually harming the interests of US companies and consumers.
In addition, unreasonable restrictions will infringe upon Huawei’s rights and raise other serious legal issues.”
