President Donald Trump on Wednesday extended Huawei ban for another year in an executive order signed in May 2019 declaring a national emergency and barring U.S. companies from using telecommunications equipment made by foreign firms which pose national security.
Arguing that the Chinese government could use the companies to spy on American networks. The new order gives the secretary of the commerce power to determine which transactions may be potential risks, no single company has been marked as a threat. But the plan is largely against China-based Huawei, which some US lawmakers have deemed a security threat.
According to the US, the company provides a backdoor for Chinese intelligence services, allegations Huawei, has sternly denied. The decision limited Huawei’s access to important components including the Android operating system as well as Google applications.
Huawei has been defiant all through. The company’s CEO argues that America’s campaign is set to intimidate the companies international footprints. Last year, Huawei shipped over 251 million units overtaking Apple’s to become second after Samsung. Which some sources reveal could be the reason for their woes.
Last February, the heads of major US intelligence agencies, including the FBI, the CIA, and the NSA, told American to refrain from using Huawei or ZTE phones. The US has also pressured allies to avoid Huawei telecom equipment in national infrastructure.
The US Justice Department charged Huawei and chief financial officer Meng Wanzhou with a host of charges, including obstruction of justice and theft of technology. The US has accused Huawei of stealing cell phone testing technology from T-Mobile, with the director of the FBI commenting that the company “repeatedly refused to respect the laws of the United States.”
The White House’s order uses the International Emergency Economic Powers Act to implement the ban. In the order, the White House praised the idea of “an open investment climate,” but said, “openness must be balanced by the need to protect our country against critical national security threats.”
In a statement, a Huawei spokesperson said the company was the “unparalleled leader in 5G” and suggested a ban would raise “serious legal issues.”
“We are ready and willing to engage with the US government and come up with effective measures to ensure product security,” the spokesperson said, adding that restrictions “will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment, and eventually harming the interests of US companies and consumers.”
However, Huawei has been tirelessly working to salvage the situation including coming up with an inhouse OS and applications to replace google services. Last month, the company released HUAWEI Y7p, the first smartphone without Google Mobile Services under its HUAWEI Y Series.
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