Saturday, 30 May 2020

Trump’s trade ban on Huawei extended to May 2021

by Harry Baldock, Total Telecom
Thursday 14 May 20

US companies will be barred from purchasing communication equipment from companies deemed a threat to national security, including Chinese giant Huawei

The China–US trade war shows no sign of stopping today, as the Trump administration extends the ban on foreign telecoms equipment that could pose a threat to national security. The ban was first implemented in May 2019, barring US companies from buying from or working with a wide range of companies they deemed untrustworthy…

The China–US trade war shows no sign of stopping today, as the Trump administration extends the ban on foreign telecoms equipment that could pose a threat to national security.

The ban was first implemented in May 2019, barring US companies from buying from or working with a wide range of companies they deemed untrustworthy, including Huawei and ZTE.

Now, the ban is being extended for another year, reaching into May 2021.

In his statement, President Trump called the listed companies “adversaries” and said they continue “to pose an unusual and extraordinary threat to the national security, foreign policy, and the economy of the United States.”

The ban notably removed Huawei’s ability to use Google services for its smartphones, prompting the company to develop its own Huawei Mobile Services platform.

However, Huawei was in fact given a reprieve from this ban last year by the Department of Commerce, with a grace period that extended to May 15th 2020. However, Reuters reports that this extension is likely to be lengthened once again. 

Tension between the US and China has flared in legislation during the coronavirus pandemic.

In April, President Trump announced an Executive Order to establish a new committee to review applications of foreign investors in the US telecoms sector, in a move that could block companies like China Mobile from providing services in future. 

Later that same month, the Federal Communications Commission (FCC) levied an ultimatum against four Chinese telcos, giving them just 30 days to demonstrate that they operate entirely independently from the Chinese government, or else lose their right to operate in the US. This deadline will expire at the end of this month.

While these threats and bans are undoubtedly damaging for the disputed Chinese companies, they are also harming the US economy. There is light at the end of the tunnel, however, with the US recently agreeing to work together with Huawei on 5G standards, fearing they would otherwise find  themselves left behind on the new technology.

 

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