Published: Sat, May 18, 2019
Worldwide | By Isabel Fisher

Germans, Dutch won't ban Huawei despite U.S. move

Germans, Dutch won't ban Huawei despite U.S. move

"It signals to United States friends and allies how far Washington is willing to go to block Huawei", Council on Foreign Relations cybersecurity director Adam Segal said.

-China trade war. The company has always been seen as an espionage threat to the USA due to its alleged connection with the Chinese government and the oversized influence it has in the deployment of 5G networks around the world. "Assuming the United States export ban on Huawei remains unresolved for the next 12-24 months, we highly doubt if China would stick to its timetable of building 5G aggressively", Jeffries wrote in a note seen by Reuters.

The moves expand a trade war between the USA and China.

The order doesn't mention Huawei or China by name, but it was widely seen as targeting Huawei and other Chinese companies such as ZTE.

The move came shortly after President Donald Trump signed an executive order that could effectively ban the Chinese company from selling technology in the American market. The e-mail said that Huawei's inclusion in the so-called "physical list" is the latest step by the United States government to suppress the company because of political purposes.

In 2016, the Department of Commerce initiated two separate probes into USA steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962.

"China has always stressed that the concept of national security should not be abused", a China Ministry of Commerce spokesperson said.

The Commerce Department on Wednesday announced it would add Shenzhen, China-based Huawei and its subsidiaries to a USA "entity list" - meaning it can keep Huawei from buying US technology if "the sale or transfer would harm USA national security or foreign policy interests".

The listing requires U.S. firms to get a license from BIS for the sale or transfer of American technology to a company or person on the list.

It's unclear whether Wednesday's moves would also spur action at the Federal Communications Commission, which tentatively voted more than a year ago to ban using federal subsidies for equipment from a provider identified as posing a national security risk.

The move announced Wednesday states, among other requirements, that US firms must seek government approval before doing business with Huawei.

"It fundamentally misunderstands the nature of modern China, global technology markets and of 5G".

The US has tried repeatedly to convince its allies and partners in Europe to bar Huawei's technology from being used in their 5G networks to no avail but an official ban may be able to convince them otherwise.

Huawei said "unreasonable restrictions" will infringe upon its rights and raise serious legal issues.

Washington lawyer Douglas Jacobson, a trade expert, said there would be collateral impact on the USA companies that sell to Huawei.

Shortly after, former Canadian diplomat Michael Kovrig and a businessman, Michael Spavor, were detained on national security grounds. The second one is a business consultant, Michael Spavor, who has been accused of "stealing and providing state secrets for overseas", Lu said.

"Canada strongly condemns their arbitrary arrest as we condemned their arbitrary detention on December 10", the Canadian foreign ministry said in a statement to Canadian newspaper The Globe and Mail.

The apparent one-two punch is the administration's latest in a series of measures against China's largest telecom equipment company, as the two countries engage in tense trade and technology fights.

"China is always open for talks but it would fight to the end should a "trade war" break out", he wrote.

It's not just hardware from USA companies - including Qualcomm, Intel, and Micron - that Huawei needs and the government would have to approve, but anything else coming from the United States, including software.

"China does not fear any pressure, and has the confidence, resolution and ability to respond to any risk and challenge", he added.

Like this: