Places Huawei and Its 67 Affiliates on Blacklist

Places Huawei and Its 67 Affiliates on Blacklist

Places Huawei and Its 67 Affiliates on Blacklist

US President Donald Trump declared a national emergency for the telecommunications sector on Wednesday, citing "unacceptable risks" from "foreign adversaries" - including from cyberespionage and sabotage.

Shares of Huawei's US suppliers fell on fears the Chinese firm would be forced to stop buying American chips, software and other components after the Trump administration banned it from buying USA technology without special approval.

So far, no European country has formally blocked Huawei, and the majority of the company's current global 5G contracts are with companies operating within Europe.

Separately, and perhaps even more importantly, the Shenzhen giant and 70 affiliates have been placed on an "entity list".

While it doesn't name specific countries or companies, it follows months of US pressure on Huawei.

The UK is still reviewing its 5G telecoms policy and may allow Huawei to supply "non-core" 5G components, such as antenna masts.

In the latest twist affecting U.S.

Chinese retaliation against USA tariff hikes has included targeting American companies in China by slowing down customs clearance and issuance of business licenses.

Huawei said that it's "ready and willing to engage with the USA government and come up with effective measures to ensure product security".

The Trump administration has pressured its allies to preemptively ban Huaweiequipment from their5G networks, with limited success. While US steel companies like U.S. Steel (X) and AK Steel (AKS) supported Section 232 tariffs, automakers like Ford (F) and General Motors (GM) have been apprehensive over the Section 232 probe. But Germany and France have not followed suit.

The US has urged allied governments to exclude Chinese companies such as Huawei from the 5G expansion over concerns the Chinese government could use the equipment as a backdoor for spying.

Lu said China opposes countries that create problems using national security as an excuse.

Samm Sacks, a cybersecurity fellow with think tank New America, says the administration's executive order "is a page from Beijing's playbook". First came an executive order that vividly paints a picture of foreign adversaries sabotaging USA communications networks and compromising critical infrastructure.

"This decision is in no one's interest", Huawei said in a statement on Thursday.

Huawei says it supplies 45 of the world's top 50 telecommunications companies.

Founded in 1987 in the southern Chinese city of Shenzhen, privately-held Huawei is a global technology leviathan - the world's largest producer of telecommunications networking equipment and the number-two supplier of smartphones, behind Samsung and ahead of Apple.

A security robot with Huawei 5G technology is displayed at an exhibition during the World Intelligence Congress in Tianjin, China on May 16, 2019. He was referring to the thousands of antenna stationsthat will process 5G bandwidth.

"This is a needed step and reflects the reality that Huawei and ZTE represent a threat to the security of United States and allied communications networks".

There will be less impact on Huawei's mobile handset business.

Huawei responded Thursday by saying that having to get USA government approval for all purchases of American technology is "in no one's interest". According to a report released by Gartner earlier this year, Huawei "s semiconductor procurement expenditure reached $ 21.131 billion in 2018, a 45% year-on-year increase". Thirty-three of them are from the USA, including chip giants Qualcomm Inc and Intel Corp. It has also spent years investing in developing its own chips, though Purdy said the company had not given up on its network here.

Apparently this spending spree includes 35 higher education institutions around the United Kingdom, which will probably come as a surprise to Oxford University, which stopped accepting the Chinese company's cash in January.

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