Trump signs new executive order, paving the way for banning Huawei from cooperating with US companies?

Source: Content Combined from Reuters and AFP , thank you .

On Wednesday (May 15), US President Trump issued an executive order declaring a national emergency and prohibiting US companies from using telecommunications equipment produced by companies that may endanger US national security.

The order, which gives the president authority to regulate commerce in times of national emergency, would require the Commerce Department to work with other government agencies to come up with an implementation plan within 150 days, the sources said.

Although Trump did not specify which foreign companies threaten US national security in the executive order, it is widely believed that the target of this order is Chinese telecommunications giant Huawei.

On the same day, the United States also added Huawei and its 70 affiliated companies to the so-called "blacklist", prohibiting them from purchasing American components without the consent of the US government.

U.S. officials said that even if the policy does not completely prevent Huawei, the world's largest telecommunications equipment maker, from selling any products, it will at least make it difficult to sell some products due to Huawei's dependence on U.S. suppliers.

The Commerce Department said the action stemmed from a report on Huawei released by the U.S. Department of Justice in January, which pointed out that Huawei and other companies conspired to illegally provide financial services to Iran. Therefore, the Commerce Department can reasonably infer that Huawei's actions are "contrary to the national security and foreign policy interests of the United States." U.S. Commerce Secretary Wilbur Ross said President Trump supports this decision.

The amendment to the U.S. National Defense Authorization Act (NDAA), which came into effect in August last year, has banned recipients of federal funds, including some universities and research institutions, from using telecommunications, video recording, and network equipment provided by Huawei, ZTE and other Chinese manufacturers. The law also requires new regulations to be formulated as soon as possible to restrict American universities from conducting scientific research cooperation or signing agreements with China. The law requires the Secretary of Defense to work with universities to find ways to protect intellectual property rights and prevent scholars from being exploited by foreign countries. If American universities fail to comply with the provisions of the bill by August 2020, they will face financial risks such as the loss of federal research funding. As a result, many universities are busy dismantling existing Huawei equipment.

Just this Tuesday (May 14), Huawei Chairman Liang Hua told the media during his visit to the UK that the company is willing to sign a "no-spy agreement" with the governments of the UK and other countries, promising that the telecommunications equipment it provides meets the standards of no spying and no backdoor programs.

London is currently debating how much involvement Huawei should be allowed in Britain's 5G network construction, as its 5G equipment is more advanced and cheaper than that of its competitors.

NATO Secretary General Jens Stoltenberg said on the same day that the security of communication networks is always the top priority for NATO, a Western military alliance. Speaking at a business meeting in London, he pointed out that "Huawei and 5G network issues are crucial." Stoltenberg believes that NATO member states, including the United Kingdom, have the right to make independent decisions on China and 5G issues. "Of course, for NATO, the decisions of member states should ensure the security of their communication networks." He stressed that the topic of communication network security cannot be avoided. "We must ensure that our networks are secure."

Trump's executive order banning U.S. companies from doing business with Huawei is likely to add fuel to the ongoing U.S.-China trade war, with Washington accusing China of using unfair trade practices that have led to a serious imbalance in trade between the two countries.

The United States has accused Huawei of being a private Chinese company that could be directed by the Chinese government to engage in espionage, and is seeking to ban it from participating in the construction of communications networks in its own country and its allies. Huawei has strongly refuted the accusations and has repeatedly stated that it hopes to resolve external security concerns by signing a non-eavesdropping agreement with foreign governments.

There are also many debates within the British government about the Huawei issue. Just in early May, British Defense Secretary Gavin Williamson was fired by the Prime Minister for allegedly leaking the cabinet's discussion on Huawei from the National Security Council. Earlier, the British Daily Telegraph quoted sources as saying that British Prime Minister Theresa May had approved Huawei's "limited participation" in the construction of non-core parts of the UK's 5G network. As soon as the report came out, Huawei issued a brief statement at the first time, saying that it was happy to see the content of the relevant report. The United States quickly stated that it did not believe there was any difference between the core and non-core equipment of the 5G network, and Washington would also review whether to continue sharing intelligence with allies using Huawei equipment.

Chinese Foreign Ministry spokesman Geng Shuang commented on Trump's move on the 15th - it was an abuse of state power, which was neither honorable nor fair.

He said that for some time, the United States has abused its national power and used all means to deliberately smear and suppress specific Chinese companies, which is neither honorable nor fair.

"We urge the US to stop suppressing Chinese companies under the pretext of security issues and provide a fair, just and non-discriminatory environment for Chinese companies to invest and operate normally in the US," Geng Shuang said.