China's Huawei restricted from using U.S. suppliers

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Trump signs executive order clearing the way to ban Huawei from U.S. networks

Qualcomm fell 4 percent.

In another development, alongside the executive order, the USA commerce department put Huawei on its "entity list", meaning Chinese-tech giant will require government approval if it wants acquire technology from United States organisations.

Commerce Secretary Wilbur Ross said Thursday in an interview with Bloomberg TV that the sanctions are "not really a part of the trade negotiation" but added that they could be reversed should Huawei no longer be deemed "a significant danger" to USA national security.

Huawei's chief financial officer Meng Wanzhou, the daughter of its founder, was detained in Canada in December at the request of the United States, which seeks her extradition over allegations of violating Iran sanctions. Separately, he said President Donald Trump had given his department 150 days to establish a process to screen USA companies' purchases of equipment from Huawei, and other equipment providers with which officials have concerns.

Such trade bans can be crippling. "The U.S. can allow some companies to sell to Huawei while ultimately holding the cards". "While the intent is to punish Huawei, ultimately, USA companies are also being penalised", he said, adding that the likelihood that the Commerce Department will grant licences to allow sales is negligible.

This move is going to affect a lot of companies.

"That doesn't mean every license would be denied, but it would be on a case-by-case basis", he said.

Nevertheless, while Huawei has succeeded in free markets around the world, it remains part of a political and economic system that is far from free, and far from respectful of human rights.

The US claims Huawei, one of China's most important companies, poses a spying risk to Western technology infrastructure.

Customers using Huawei's mobile handsets could also face disruptions in their operating software, industry observers said. The Department of Commerce found that steel and aluminum imports are a threat to United States national security and recommended tariffs. "Huawei would essentially be a sitting duck".

Google spokesman Colin Smith said he didn't have an immediate comment. In 2018, President Donald Trump signed a bill preventing the federal government from using Huawei equipment, although some rural telecommunications carriers do.

It is the American companies that could suffer from the restriction on Huawei at the earliest stage.

The company also said "unreasonable restrictions" on Huawei raised "other serious legal issues". It would also be a relief to Huawei, because chip design is one area in which Chinese companies still lag behind the United States.

Nelson Dong, a partner at law firm Dorsey and Whitney, disagreed with that assessment.

Citing what he termed a "vast array" of efforts from China against USA interests, Nunes criticized Democrats for having focused on questions about whether the Republican Trump's presidential campaign had cooperated improperly with Russian Federation to influence the 2016 US election.

Yesterday, the US Department of Commerce announced on its official website that Huawei Technologies Co., Ltd. and its subsidiaries were included in the "list of entities".

Huawei said in a statement on Thursday that restricting the company from doing business in the U.S. will not make the U.S. more secure or stronger.

Given the assumptions that had underlaid globalization and U.S.

He added that Huawei and USA government officials were setting up a meeting to discuss potential solutions to its addition to the entity list, but the two sides had yet to sit down at the table. If the move sounds familiar, that's because ZTE went through something similar previous year, and it almost ruined the company.

Huawei is already the biggest global supplier of networking equipment, and Entner said it is poised to overtake Samsung as the No. 1 smartphone manufacturer.

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