President Donald Trump has issued an executive order that declares a national economic emergency and restricts US companies from using any telecommunication equipment manufactured by the world’s second largest smartphone company, Huawei.
The White House said that the order regards to threats against US telecommunications and authorize the US commerce secretary to “prohibit transactions posing an unacceptable risk” to national security. It will not apply to transactions that had been completed before the release of the order on Wednesday.
The US government took specific action against Huawei by putting the Chinese company on the so-called Entity List, meaning that American companies will have to obtain a license from the US government to sell technology to Huawei.
The order reflects government concerns that equipment from Chinese suppliers could pose an espionage threat to US internet and telecommunications infrastructure.
In the said circumstances, Huawei replied in a statement, “If the US restricts Huawei, it will not make the US safer, nor will it make the US stronger. It will only force the US to use inferior and expensive alternative equipment, lagging behind other countries, and ultimately harming US companies and consumers”. The company added that it is willing to discuss US concerns over product security.
This move has aggravated the ongoing US-China trade clash. The US national security establishment is worsening the situation by pushing other countries to bar Huawei from 5G networks. Australia and Japan have agreed, whereas the UK and Germany have refused, indicating that they will allow Huawei to provide equipment for their 5G networks.