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Huawei Was Close To Be Banned From US Financial System Last Year: Reuters


12/03/2019


Huawei Was Close To Be Banned From US Financial System Last Year: Reuters
The Chinese telecom equipment maker Huawei was planned to be completely banned from the financial system of the United States earlier this year as a part of the policy of the US government to prevent the company, which had been blacklisted by the US government, from doing business in the US, said a report published by the news agency Reuters quoting source information.
 
The report claimed that the administration under US president Donald Trump had also wanted to place the Huawei on the Treasury Department’s Specially Designated Nationals (SDN) list, even though the plan had been discarded immediately.
 
Huawei is the largest maker of telecom equipment in the world.
 
The Reuters report also claimed sources saying that dependent on how the relationship between the US administration and Huawei develops in the future, that plan can be revived.
 
The plan was contemplated to be pushed by the White House National Security Council and was considered to be the toughest measure that could have been taken against the Chinese company among arrange of punitive actions against it to punish the company that has been accused by the Trump administration of being a threat to the national security of the country. The US administration fears that the telecom equipment supplied by the company could have back doors that could be exploited by Chinese agencies to spy on Western countries. Huawei was placed on the so called entity list of the US Commerce Department in May this year that prevented all American companies from dealing with it.
 
According to sources in the report, if such a step is implemented, it would impair Huawei completely from doing transactions in US dollars.
 
The extent to which people in the Trump administration was serious about implementing the measure against Huawei is evident in the report which states that officials at the White House gad even written a memo to this effect and had discussed the issue between different agencies of the government. 
 
The officials weighed a host of other possible measures against the company, in addition to this extreme measure, which included blacklisting of the company and forcing almost all of its suppliers to obtain a special permission from the Trump administration before entering into any form of business relations with Huawei.
 
There were no comments available from Huawie in the report. The report quoted a spokesperson of the US Treasury Department who said that the agency “does not comment on investigations or prospective actions, including to confirm whether one exists.”
 
The so called entity list of the US Commerce Department had earlier blacklisted companies such as Russia’s Rusal, the world’s second largest aluminum company Venezuelan drug traffickers, Russian oligarchs and Iranian politicians.
 
While noting that the business of Huawei would be “severely impacted” in Europe and in Asia outside of China, Annie Fixler, a cyber expert at the Foundation for Defense of Democracies think tank, said that of the action was taken against the Chinese firm, it “would have broad, widespread implications for Huawei across the globe.”
 
(Source:www.reuters.com)