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.
China warned the United States on Thursday against further harming trade ties after President Donald Trump effectively barred Chinese telecom giant Huawei from the USA market, escalating tensions between the world's top economic powerhouses.
"Who knows? Who knows what's going to happen?"
"This is a direct message to Europe about how it should be thinking of the future of its 5G networks", says Paul Triolo, geotechnology head at political consultancy Eurasia Group.
It said restricting Huawei from doing business in the United States would "limit the USA to inferior yet more expensive alternatives, leaving the U.S. lagging behind in 5G deployment and eventually harming the interests of USA companies and consumers".
President Trump's executive order did not go as far as to name any companies or countries specifically but it will likely do the opposite of improving relations between the U.S. and China.
An executive order issued by President Trump and a separate action taken by the US Commerce Department could "cut the Chinese telecommunications giant off from American suppliers and ban it from doing business in the US", The Wall Street Journal wrote.
Many see the US ban implemented this week as a strong message to European partners who are still considering working with Huawei to establish their next generation telecom infrastructure.
"The U.S. can allow some companies to sell to Huawei while ultimately holding the cards". Qualcomm fell 4 per cent, Broadcom Inc. was down 2.3 per cent and Xilinx Inc. Dropped 7.3 per cent.
Commerce Secretary Wilbur Ross on mounting concerns over Huawei, U.S. trade negotiations with China, steel and aluminum tariffs, USMCA and auto tariffs.
The U.S. has not directly responded to this economic argument, but has maintained for a long time that Huawei's business activities pose a threat to national security.
Mr Ren, now 74, founded Huawei just when two epochal events were gaining pace: China's manufacturing boom and the telecommunications age.
Worldwide, U.S. companies accounted for about half of the $469 billion of chips sold a year ago, according to the semiconductor association. Since American companies dominate semiconductors, that could smother Huawei's production of everything from 5G base stations to mobile phones. "It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs and disrupt the current collaboration and mutual trust that exist on the global supply chain".
"We are ready and willing to engage with the United States government and come up with effective measures to ensure product security", Huawei said.
One of Huawei's booths at MWC Barcelona 2019. As Reuters revealed in a different piece, out of $70 billion that Huawei spent for component procurement previous year, some $11 billion went to United States firms. Foreign Ministry spokesperson Lu Kang accused the United States of "abus [ing] export control measures while making "national security" a catch-all phrase".
American suppliers also need Chinese customers. Intel, the biggest US maker of chips, got more than 60% of its sales in the Asia Pacific region a year ago, with most of that funneling through the China and Taiwan-based supply chain.
"Whatever final decision the UK government takes about 5G network infrastructure, the UK is not considering any options that would put our national security communications at risk, within the UK and with our closest allies". The order will take effect in the coming days.
The president's executive order does not identify a country or company by name.
Ordering replacement parts could become a problem if transactions with Huawei are banned, Bennet said late Thursday morning.
Its rotating Chairman Eric Xu also told Reuters in a recent interview that "in case of unforeseen events. we definitely have our contingency plan".