Huawei says Trump's ban is in no one's interest

Huawei says Trump's ban is in no one's interest

From China's perspective, the action against Huawei (and, implicitly, all Chinese ICT companies through the Executive Order) are just one more reason to doubt USA "sincerity".

Donald Trump has signed an executive order barring USA companies from using telecommunications equipment made by firms posing a national security risk.

Ross noted in an interview yesterday with Fox Business Network that even many U.S. rural telecommunications companies use the cheaper Huawei technology in their 4G systems.

The executive order doesn't mention Huawei or China at all, but CNN reports that the Commerce Department added Huawei to a so-called "Entity List" following the order.

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".

In Beijing, a Chinese Commerce Ministry official said,"China will take all necessary measures" to ensure the rights of Chinese companies.

The twin announcements came 10 days after U.S. President Donald Trump revealed his plan to raise tariffs on $200 billion in Chinese goods, and just three days after the U.S. Trade Representative's Office listed $300 billion more of Chinese goods for tariff hikes.

After an executive order was issued on Wednesday May 15, American companies will be required to obtain licences to sell critical technology to the Chinese telecoms company.

UK Prime Minister Theresa May last month provisionally approved Huawei technology for use in the nation's future 5G telecoms networks, but a leaked account of the meeting said five cabinet ministers raised concerns about the move. Even software suppliers like Google would have to apply for explicitCommerce Departmentpermission to update Huawei's smartphone operating systems, which run on Google Android.

For instance, Gao Feng, a spokesperson for the Ministry of Commerce, told reporters, "The two sides had open and constructive communication during the 11th round of the China-U.S. high-level economic and trade consultations".

Meanwhile, memory chips used in Huawei smartphones that are produced by American firms like Micron could be substituted out for South Korean products.

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The company also said "unreasonable restrictions" on Huawei raised "other serious legal issues".

Telecom companies including Sweden's Ericsson and Finland's Nokia have been vying with Huawei to set up the world's first 5G networks, the next generation in mobile data infrastructure.

The crackdown on Huawei came as US Treasury Secretary Steven Mnuchin said he would visit China soon for more trade talks.

The sanctions on Huawei were also likely to have ramifications beyond the company itself, rattling the global tech supply chain, analysts said.

Washington has made it personal, prevailing on Canada to arrest Mr Ren's daughter - Huawei CFO Meng Wanzhou - in Vancouver, and seeking her extradition on charges of evading Iran sanctions.

"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", the USA brokerage wrote.

Lu gave no details, but analysts warned the export controls threaten to worsen a U.S.

Companies like Huawei need their USA suppliers, since Chinese manufacturers account for about only 3% of worldwide chip production, according to an estimate by Sanford C. Bernstein & Co. Inc.

"I'm not saying that you should trust China and simply take their word that they can't be ordered to do something malicious", he said.

Huawei hit back by promising to "fight to the end" of the ongoing trade war.

As negotiations towards resolving the U.S.

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