Trump's order restricting Huawei sparks strong Chinese response

Trump's order restricting Huawei sparks strong Chinese response

Trump's order restricting Huawei sparks strong Chinese response

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

The move does not name any company, but many experts claim it is aimed at Huawei. Joseph Franell, the company's chief executive officer, said in an interview on Thursday.

Do you believe Huawei's Blockchain Service will be hindered because of this ban?

One day after the U.S. moved to block Huawei from the United States market and banned the export of USA technology and materials to the company, China warned Washington Thursday against further harming trade ties.

Washington dramatically tightened the screws this week, requiring United States companies to obtain approval before selling critical technology to Huawei, a move that could prevent it from buying semiconductors from USA suppliers like Qualcomm that are crucial for its business.

Richard Dearlove said, in the forward to a report by the Henry Jackson Society thinktank, the fact that the United Kingdom government "now appears to have chose to place the development of some its most sensitive critical infrastructure in the hands of a company from the People's Republic of China (PRC) is deeply worrying".

"Restricting Huawei from doing business in the USA will not make the US more secure or stronger; instead, this will only serve to limit the inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment", the company said in a statement to Android Authority. Shares of Xilinx closed down 7.3 percent while those of rival chipmaker Qualcomm Inc fell 4 percent. Dropped 7.3 per cent. The format of these moves - an executive order and Commerce Department decision - means they can be overturned as easily as they were instituted.

Huawei is a massive technology company founded in China back in 1987.

In addition to the blacklisting, the US government is also petitioning its allies to ban Huawei from their national 5G infrastructures, and it has seen some mixed success, with many countries in Western Europe, plus Canada, Australia, and New Zealand, reevaluating their use of Huawei equipment.

Three differences remain between the two countries, according to China. Consumer spending accounts for more than two-thirds of USA economic activity.

It's pronounced "wah-way" according to the company themselves.

"And US Senator Tom Cotton, from Trump's Republican Party, tweeted: "@Huawei 5G, RIP.

Restrictions on sales "would be awful for any Huawei supplier, and for the semiconductor industry at large", Chris Caso, a semiconductor analyst at Raymond James, wrote in a research note. In 2016, Huawei's smaller rival ZTE Corp was added to the entity list over allegations it organized an elaborate scheme to hide its re-export of US items to sanctioned countries.

But British ministers have discussed allowing Huawei a restricted role in building parts of its 5G network. Huawei has repeatedly denied this.

"The bigger concern would be [that] U.S. allies that used to buy Huawei's components may not continue businesses with Huawei, because of fear of possibly upsetting the United States", said Doh Hyun-woo, an analyst at NH Investment & Securities in Seoul.

American suppliers also need Chinese customers. Previously only available in mainland China, the blockchain-based cloud service was one of the company's major rollouts a year ago. "We hope and expect that any decision on Huawei's participation in Britain's build-out of 5G networks will be based on solid evidence, rather than on unfounded speculation and groundless accusations".

"A license may be denied if the sale or transfer would harm USA national security or foreign policy interests", a Commerce Department statement said. The order will take effect in the coming days. Now they're anxious about the administration's next steps.

Trump's executive order, signed on May 15, but has been under consideration for months.

The Chinese manufacturing giant has sent an e-mail to its employees on the USA inclusion of Huawei in the "list of entities".

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