Huawei & ZTE may be squeezed out of United States market

Saul Bowman
December 29, 2018

Huawei has repeatedly insisted Beijing has no influence over it.

The firm has strongly rejected any suggestion that it poses a security threat, saying it has "never been asked by any government to build any backdoors or interrupt any networks". "This is actually tantamount to closing the door of openness on yourself, as well as the door of progress and fairness".

This week it confirmed that Huawei equipment was being removed from the heart of a communication system being developed for the United Kingdom emergency services, although it was not explicit as to why. However, it is expected that when it is released, the Commerce Department will use it as the excuse to ban the use of products by those two companies in the U.S. Bloomberg points out that a number of rural wireless carriers in the U.S. use parts from Huawei and ZTE, due to their lower prices.

President Donald Trump may be ready to sign a new executive order. Department of Justice issuing indictments for alleged Chinese hacking operations, and amid the controversy over the arrest of Huawei's CFO Meng Wanzhou in Canada, an order banning all USA businesses from purchasing Chinese telecom devices would be a major escalation in the ongoing U.S.

Over the last few months, Australia and New Zealand both banned Huawei from providing 5G technology although neither mentioned the Chinese company by name. The arrest of Ms Meng - who has since been released on bail - was requested by the USA, which wants her extradited to face charges for violating sanctions against trade with Iran. Another Canadian, identified as Robert Lloyd Schellenberg, is facing drug smuggling charges in north-eastern Liaoning province and will be tried tomorrow in Dalian city.


China's Foreign Ministry Spokeswoman Hua Chunying said on Thursday that she did not want to comment on the order as it had not been officially confirmed.

The United States and China are locked in a trade war that has disrupted the flow of hundreds of billions of dollars of goods. Ms Meng was en route to Mexico from Hong Kong.

China arrests two Canadian men on national security grounds.

While Meng was freed on C$10 million ($7.35 million) bail on December 11, China has since detained two Canadians in what is perceived to be a tit-for-tat reaction to Meng's detention. Following the script that we've heard throughout 2018, the Trump administration claims that ZTE and Huawei work on behalf of the Chinese government and could use their technology to spy on American citizens and companies.

The order could be issued as soon as next month.

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