Trump tries to shut Huawei out of U.S. market with executive order

Trump tries to shut Huawei out of U.S. market with executive order

They are warning other countries that the company is a national security risk. For example, even products made by a Japanese company can not be traded with Huawei if the USA parts account for more than a quarter of the total parts.

Worldwide technology companies are anxious about the effects of these moves on the technology industry. "China will take further necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises". According to diplomats, Germany, whose exports of cars and parts to the United States are more than half the European Union total, wants to press ahead with talks to ward off tariffs on automakers Volkswagen, Mercedes and BMW.

The two countries are having a trade war that is partly about a struggle for worldwide economic and technological power.

Of the three large Dutch telecommunications companies, KPN and VodafoneZiggo declined to comment on the report, while T-Mobile/Tele2 said it was not aware of any AIVD investigation.

Wary of growing hostility from policymakers in Washington, Huawei has been stockpiling US -made components that go into its cellphones in case the flow of parts from America is disrupted.

China could have a direct effect on corporate earnings and therefore future stock prices if it chooses to make life more hard for USA companies doing business in China.

The US just put Huawei and 70 of its affiliates on an exports blacklist which could seriously cripple Huawei's ability to conduct business for the foreseeable future.

On Wednesday, U.S. President Donald Trump signed an order that bars American companies from using telecom equipment made by businesses said to be a national security risk.

As an example, the order cites a criminal case pending against the company in federal court in Brooklyn, New York, over allegations Huawei violated US sanctions against Iran.

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

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Representatives for US suppliers, who did not want to be identified, said they were unsure about the lasting impact of the Huawei ban on their operations. Huawei will have to procure parts from US firms like Xilinx, Texas Instruments and Analog Devices, according to Simpson.

The newspaper said Dutch intelligence agency AIVD was looking into whether the situation had enabled spying by the Chinese government. It has never before been used in a way that restricts an entire industry. It has been used mainly to seize the money of drug dealers, terrorists or collapsed corrupt governments.

The Netherlands' largest telecom firm, KPN, has already made clear that it would not allow Huawei to build its "core" 5G infrastructure, but it could supply other equipment considered less sensitive.

The US, it is true, is in the midst of a trade war with China and stands open to accusations that it is trying to block Huawei's ambitions for purely protectionist reasons. China will not use the retaliatory path punishing American companies, he said.

"Huawei will seek remedies immediately and find a resolution to this matter", the company said.

The Trump administration alleges that Huawei poses a national security threat because of close ties to the communist Chinese government.

Shares of Huawei's U.S. suppliers fell on fears that the Chinese company would be forced to stop buying American chips, software and other components.

The United States has been effectively pushing different nations not to utilize Huawei's hardware in cutting edge 5G systems that it calls "conniving".

MF: If Trump gets a trade deal with China, will the USA government concern over Huawei evaporate? He is a cybersecurity director at the U.S. Council on Foreign Relations. "There are Japanese firms that supply parts to Huawei, and supply chains are intertwined in complex ways", Japanese Finance Minister Taro Aso said yesterday after a regular Cabinet meeting. But how do you take it that the controversy surrounding Huawei is being discussed in national security terms and not in terms of competition among the company and its competitors?

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