The Trump government has filed criminal charges against Huawei for stealing technology. It has all but snuffed out the Chinese tech giant’s sales in the U.S., calling the firm an espionage threat. And it has tried to persuade other governments to do similarly. However, Washington had not taken a straight shot at Huawei’s ability to do business anywhere in the world before that. But the Commerce Department said on Wednesday it is adding Huawei Technologies Co. Ltd to its so-called Entity List. A move that bans the telecom giant from buying and using components and parts from U.S. companies without U.S. government approval. This vivid move comes as the Trump government has aggressively lobbied other countries not to use Huawei equipment in next-generation 5G networks. However, comes just days after the Trump government imposed new tariffs on Chinese goods amid an escalating trade war.
The U.S. Commerce Department said the move comes after the Justice Department unsealed an indictment in January of Huawei. Though, some entities that said the company had conspired to provide prohibited financial services to Iran. They said it has a reasonable basis to conclude that Huawei is “engaged in activities that are contrary to U.S. national security or foreign policy interest.” Huawei reported first-quarter revenue of almost $27 billion last month and said it had shipped 59 million smartphones in the first quarter. The Commerce Department added ZTE Corp. to the entity list, in March 2016. The allegation over them is it organized an elaborate scheme to hide its re-export of U.S. products to sanctioned countries in violation of U.S. law. The restrictions barred suppliers from providing ZTE with U.S. tools, potentially freezing the Huawei rival’s supply chain, but they were short-lived. The U.S. suspended the restrictions in a series of impermanent reprieves, allowing the company to maintain ties to U.S. sellers until it agreed to a plea deal a year later. Trump signed a bill that barred the U.S. administration itself from using equipment from Huawei and ZTE, in August.
Under the order, Huawei will need a U.S. administration license to buy American technology. Huawei did react with these statements that “it is ready to engage with the U.S. administration and come up with effective measures to make sure product security. The spokesman Chasen Skinner said in an email that “This decision is in no one’s interest”. “It will do major economic harm to the American companies with which Huawei does business. Not just this, but it will affect disrupt the current collaboration, tens of thousands of jobs, and mutual trust that exist on the global supply chain. Huawei hit back by saying “Restricting Huawei from doing business in the U.S. will not make the U.S. more secure or stronger”. Instead of this, it will only serve to limit the United State to inferior yet more expensive alternatives, leaving the U.S. lagging behind in 5G deployment. And eventually harming the interests of U.S. companies and consumers,”
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