Trump bans US companies from doing business with Huawei | Economic Aspects


Trump bans US companies from doing business with Huawei | Economic Aspects


Trump prohibits US companies from doing business with Huawei
This time, the United States can be said to fight against Huawei: Not only does it prohibit US companies from purchasing and using Huawei products, but it also prohibits Huawei from purchasing US components. Under this two-way clip, how can Huawei solve the problem?
When the US president declares that the country is in a state of emergency, it will be given more power.
(German Voice Chinese Network) On Wednesday (May 15th), US President Trump issued an executive order announcing the state's state of emergency, prohibiting US companies from using telecommunications equipment produced by companies that may endanger US national security.
According to the International Emergency Economic Powers Act, the President has the power to conduct commercial controls when the country is facing an imminent threat. According to sources, the decree will require the Ministry of Commerce to work with other government agencies to develop an implementation plan within 150 days.
Although in the executive order, Trump did not specify which foreign companies threatened US national security. However, it is widely believed that the target of this order is Huawei, the Chinese telecom giant.
On the same day, the United States also included Huawei and its 70 affiliates in the so-called "blacklist", prohibiting them from purchasing US components without obtaining the consent of the US government.
US officials said that this policy will not allow Huawei, the world's largest telecommunications equipment manufacturer, to sell completely no goods, but Huawei's dependence on US suppliers will at least make it difficult to sell some of its products. .
The US Department of Commerce said that the action originated from a report released by the US Department of Justice in January about Huawei, which indicated that Huawei and other companies had colluded to illegally provide financial services to Iran. Therefore, the Ministry of Commerce can reasonably reason that Huawei’s actions “violate the interests of the US national security and foreign policy.” US Commerce Secretary Wilbur Ross said President Trump supports the decision.
Huawei Vice President of Germany: Our products do not have "back door"
Beijing: The United States should avoid continuing to impact economic and trade relations between the two countries
Beijing quickly responded to the ban on Washington. China’s Ministry of Commerce spokesman Gao Feng said on Thursday that he strongly opposed any country’s unilateral sanctions against Chinese companies and said the United States should avoid continuing to influence Sino-US trade relations.
At the regular press conference on May 16, Chinese Foreign Ministry spokesperson Lu Hao also expressed his position on Washington’s listing of Huawei and its subsidiaries in the “list of entities” and urged the North American nation to prevent wrong practices and conduct traditional operations for the 2 countries. Trade and cooperation create conditions to avoid further impact on Sino-US economic and trade relations. Lu said that China has consistently required enterprises to strictly implement the relevant laws and regulations on national export control and abide by the laws and policies of the host country. "But China firmly opposes any country's unilateral sanctions against Chinese entities under its own domestic laws, and also opposes generalization. National security concept, abuse of export control measures."
Huawei: The United States will not be stronger
On the morning of the 16th, the World Wide Web reported that Huawei responded as follows: "If the United States restricts Huawei, it will not make the United States safer and will not make the United States stronger. It will only force the United States to use inferior and expensive alternative equipment in the construction of 5G networks. Behind other countries will ultimately harm the interests of US businesses and consumers. Unreasonable restrictions will also infringe on Huawei's rights and cause other serious legal problems."
On the 15th, Reuters pre-emptively reported that the United States intends to ban domestic enterprises from purchasing "endangered national security" enterprise products. On the same day, the Chinese Ministry of Foreign Affairs held a regular press conference. At the meeting, the spokesperson Yu Shuang responded to the reporter's response: "The US abuse of state power to deliberately discredit and suppress specific Chinese enterprises is neither glamorous nor fair. The motives of the world have long been clear." He also called on the United States to provide a fair, just and non-discriminatory environment for Chinese companies to invest in the United States.
The US National Defense Authorization Act (NDAA) amendment, which came into effect last August, has banned federal funds recipients, including some universities and research institutions, from using telecom, video recording, and network equipment provided by many Chinese manufacturers such as Huawei and ZTE. . The law also requires the formulation of new regulations as soon as possible to restrict US universities from conducting scientific research cooperation or signing agreements with China. The law requires the Secretary of Defense to cooperate with universities to find ways to protect intellectual property rights and prevent scholars from being used by foreign countries. If American colleges fail to comply with the provisions of the Act by August 2020, they will face financial risks such as the loss of federal research funding. Many colleges and universities are therefore busy removing existing Huawei equipment.
Background reading: American universities use Huawei? tear down!
Huawei wants to use "no spy agreement" to resolve doubts
Just this Tuesday (May 14th), Huawei Chairman Liang Hua told the media during his visit to the UK that the company is willing to sign a “no spy agreement” with the governments of the United Kingdom and other countries, and promises that the telecommunications equipment it provides is non-spyware and no. The standard for backdoor programs.
At present, London is still hesitating to what extent Huawei should allow Huawei to participate in the construction of 5G networks in the UK. Compared with competitors, Huawei's 5G equipment is more advanced and cheaper.

Trump bans US companies from doing business with Huawei | Economic Aspects


NATO Secretary General Stoltenberg

On the same day, NATO Secretary General Jens Stoltenberg said that for NATO, a Western military alliance, the security of communication networks has always been the first. He attended a business conference in London and pointed out that "Huawei and 5G network issues are of paramount importance." Stoltenberg believes that NATO member states, including the UK, have the right to make decisions on Chinese issues and 5G issues. "Of course, for NATO, member states should make decisions to ensure the security of their communication networks." He stressed that the topic of communication network security cannot be avoided. "We must ensure that our network is secure."

Trump issued an executive order prohibiting US companies from dealing with Huawei, and is likely to add fuel to the current US-China trade war. Washington has accused China of using unfair trade practices, leading to a serious imbalance in trade between the two countries.

In response to the Huawei Group, the United States accused the Chinese private company of being likely to be instructed by the Chinese government to engage in espionage and sought to prohibit its participation in the construction of communication networks in its own countries and allies. Huawei strongly refutes the relevant accusations and has repeatedly stated that it hopes to eliminate external security concerns by signing a non-eavesdropping agreement with foreign governments.

Extended reading: the US and the NATO system suffers Promote the use of Huawei 5G

There are also many disputes within the British government about Huawei. Just in early May, the British Defense Minister Gavin Williamson was allegedly dismissed from the National Security Council regarding the cabinet's discussion on Huawei. Earlier, the British "Daily Telegraph" quoted sources as saying that British Prime Minister Tracy May has approved Huawei's "limited participation" non-core part of the UK's 5G network. As soon as the report came out, Huawei issued a short statement at the first time, expressing its willingness to see the contents of the relevant report. The United States quickly said that there is no difference between the core and non-core devices of 5G networks, and Washington will re-examine whether it will continue to share intelligence with allies using Huawei devices.