Thursday, 23 May 2019

Trump ups the ante in his 5G trade war with China

By Chris Kelly, Total Telecom
Thursday 16 May 19

Chinese technology producers will now have to apply for a special licence to do business with US firms

US president Donald Trump has passed a new law, effectively banning Chinese telecommunications firms from doing business with American companies. Chinese tech firms will now be required to apply for a special licence if they wish to do business with American companies…

US president Donald Trump has passed a new law, effectively banning Chinese telecommunications firms from doing business with American companies.

Chinese tech firms will now be required to apply for a special licence if they wish to do business with American companies.

President Trump said that he had signed the bill to safeguard the security of the US' telecommunications infrastructure, however, many analysts are seeing the latest developments as little more than a cynical move in Trump's ongoing trade war with China.  

The US has been lobbying its allies in Europe to exclude Huawei from their 5G network rollout programmes but has met with significant pushback as Europe rallies around the world's biggest network equipment provider.

In a statement to the press, representatives from Huawei said that the US risked leaving itself technologically isolated by effectively banning Huawei.

"We are the unparalleled leader in 5G development. 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," the telecom giant said in a statement.

"In addition, unreasonable restrictions will infringe upon Huawei's rights and raise other serious legal issues," the statement said.

President Trump has also declared a state of national emergency in regard to the cyber security of the US' critical national infrastructure, as he attempts to ramp up the spin surrounding the issue.  

Also in the news

The FCC blocks China Mobile's application for a US telecoms licence

China Unicom extends 5G trials to 40 cities in China

Huawei in the UK - It's a £1.7 billion deal

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