Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

Trump to Ban US Firms From Using Foreign Tech Deemed ‘Security Risk’

President Trump on Wednesday signed an executive order to bar USA companies from using telecommunications firms deemed a national security risk, a move targeted at both present and future liabilities but one that is poised to affect China's Huawei Tech. The order might eventually name specific companies or countries as Commerce carries out the process.

The executive order invokes the International Emergency Economic Powers Act, which gives the president the authority to regulate commerce in response to a national emergency that threatens the United States.

There is also a catch-all provision meant to block anything that "otherwise poses an unacceptable risk to the national security of the United States or the security and safety" of Americans.

The move would come as relations between the U.S. and China continue to break down, with the past week having seen both sides ratchet up tariffs. Industrial production and investments were also weak.

Department of Homeland Security cybersecurity director Chris Krebs warned the Senate Judiciary Committee on Tuesday that Beijing could force Chinese telecom companies to push out updates with hidden back doors and deliberate security flaws, making it possible for Chinese agents to steal data from Western companies or even sabotage US infrastructure.

The U.S. has been trying without success to persuade other governments to exclude to exclude equipment made by Huawei from super-fast 5G mobile networks that will connect billions of devices.

Huawei's United States market dried up after a congressional panel first labeled the company a security risk in 2012.

The Huawei debate has pushed Britain into the heart of China's heated battle for global dominance with the United States.

"Buying from Huawei just makes it easier to spy, and hurts our allies at the same time", added Lewis.

The Secretary of Homeland Security is also required to prepare a written evaluation of hardware, software, and services vulnerabilities that could threaten U.S. national security within 80 days.

The order doesn't outright ban USA sales by the companies, but would give greater authority to the Commerce Department to review products and purchases by firms connected to adversarial countries, including China.

Huawei is criticized relentlessly for allegedly participating in espionage activities under direction from the Chinese government, an accusation that is repeatedly denied by both Huawei and China and has never been fully proven. And the company's chairman, Liang Hua, said on Tuesday that his company is even willing to sign no-spy agreements with governments that commit the firm to "making our equipment meet the no-spy, no-backdoors standard".

The main USA wireless carriers have vowed not to use Huawei equipment in their 5G networks, but rural providers have relied on the company's low-priced equipment and warned of the potential impact of a ban.

The FCC voted unanimously to deny China Mobile Ltd's bid to provide USA telecommunications services last week and said it was reviewing similar prior approvals held by China Unicom and China Telecom Corp.

The U.K. will decide soon about Huawei's involvement in its telco infrastructure and these promises from the company are likely an attempt to assure the government there is nothing to fear.

No US government agency can use Huawei's products.

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