Sections

ideals
Business Essentials for Professionals



Trump Executive Order Blacklists Huawei


05/16/2019


Trump Executive Order Blacklists Huawei
American telecom companies have now been banned from using telecom equipment form foreign companies that could be a threat to national security after the signing of an executive order by United States President Donald Trump even as the trade war between the US and China is escalating with new increased tariffs form both sides.
 
The Chinese company Huawei Technologies Co. Ltd and its affiliates would be added to the Entity List, announced the Bureau of Industry and Security (BIS) of the Department of Commerce, as soon as the executive order which is called "Securing the Information and Communications Technology and Services Supply Chain", was signed by Trump.
 
There is a threat to the national security of the US and was in opposition to the country’s foreign policy interest because of the activities of Huawei, alleged the US Department of Commerce. The executive order means that a license issued by the BIS would be required for the sale or transfer of American technology to a company or person on the Entity List. However such license can be denied if there is a perceived threat to the US national security or foreign policy interests which would stop the sale or transfer proposal.
 
The listing will be effective when published in the Federal Register.
 
“This action by the Commerce Department's Bureau of Industry and Security, with the support of the President of the United States, places Huawei, a Chinese-owned company that is the largest telecommunications equipment producer in the world, on the Entity List,” Commerce Secretary Wilbur Ross said.
 
Ross said that the aim of the executive order is to prevent the use of American technology by foreign-owned companies, firms and other organization in a manner that can be perceived to be a threat to the national security of the US or goes against its foreign policy interests. He added this step has been taken following directions for the president of the country.
 
The executive order states: “the unrestricted acquisition or use in the US of information and communications technology or services that are subject to the jurisdiction or direction of foreign adversaries augments the ability of those foreign adversaries to create and exploit vulnerabilities in information and communications technology or services and that can have potentially catastrophic effects, and thereby, constitutes an unusual and extraordinary risk to our national security, foreign policy and economy.”
 
A senior US administration official reportedly told the media Trump "is incredibly" committed in stopping American information and communications infrastructure being turned into a liability instead of an asset by adversaries of the country.
 
"This is a needed step and reflects the reality that Huawei and ZTE represent a threat to the security of US and allied communications networks. Under current Chinese security laws, these and other companies based in China are required to provide assistance to the Chinese state," Senator Mark Warner said.
 
The US Department of Commerce has been granted a great deal of authority by the executive order. The department has been entrusted with the responsibility of implementation of the order in a fair and responsible manner so that legitimate business activities are not harmed or stifled.
 
"Huawei is a state-directed instrument of national power used by the Chinese government and Communist Party to destroy their international competitors, undermine US companies, spy on foreign countries and steal intellectual property and trade secrets," Senator Marco Rubio said.
 
(Source:www.marketwatch.com)