Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

President Donald Trump issued an executive order Wednesday apparently aimed at banning equipment from Chinese telecommunications giant Huawei from US networks.

It gives the secretary of commerce the power to "prohibit transactions posing an unacceptable risk to the national security", the statement adds. Huawei, the world's biggest supplier of network gear, has been deemed a danger in USA national security circles for the better part of a decade.

It's no secret that USA's defense department is having some issues with the Chinese telecommunication giant, Huawei. Huawei, which has repeatedly denied such allegations, did not immediately comment on the executive order. Huawei is the biggest global maker of switching equipment for phone and internet companies, but it has also spent a decade fighting accusations that it facilitates Chinese spying.

The Rural Wireless Association, which represents carriers with fewer than 100,000 subscribers, estimated that one-quarter of its members had Huawei or ZTE equipment in their networks, it said in an FCC filing in December previous year.

Beijing has condemned the measure as discriminatory, reacting to the reports in multiple United States media outlets that the emergency order was in the works.

"Despite the fact Huawei has its headquarters in China, we are actually a globally operating company", he said.

The order would also further intensify the trade war between China and the US, which has been heating up in recent days.

Donald Trump ratcheted up his battle with China for dominance of 5G technology networks, moving to curb Huawei Technologies Co.'s access to the US market and American suppliers.

Trump previously resisted signing the order, partly because he did not want to jeopardise a potential trade deal with China.

The Wall Street Journal first reported in May 2018 that the executive order was under review.

United States security and intelligence agencies believe equipment made by the company could be used by the Chinese government for spying. An administration official insisted in a conference call with reporters on Wednesday that the order wasn't aimed specifically at China.

They did not say whether subsidies would be considered.

In the past, Huawei has denied that it spies for the Chinese government and earlier this year company chairman Liang Hua said that if asked to spy by the government, he would defy them.

General counsel Carri Bennet of the Rural Wireless Association has said a ban would cost its 15 affected members at least $800 million to redo their networks to strip out Huawei and ZTE equipment. She was arrested in Canada last December.

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