On Wednesday, US President Donald Trump has officially signed an executive order to stop US companies from stop doing business with Huawei and its related firms, which directly aims at Huawei.
The order paves the way to put a ban on doing business with the Chinese telecom giant, though it did not name specific countries or firms.
The US commerce department said it is adding Huawei Technologies and 70 affiliates to its “Entity List” or simply called a trade blacklist – an action that bans the telecom giant from buying parts and components from US companies without US government approval, reported Reuters.
US official told that decision would also make it difficult if not impossible for Huawei, the largest telecommunications equipment producer in the world, to sell some products because of its reliance on US suppliers.
The US Commerce Secretary Wilbur Ross said in a statement President Donald Trump backed the decision that will “prevent American technology from being used by foreign-owned entities in ways that potentially undermine U.S. national security or foreign policy interests.”
This new order will make its effect in the upcoming days and Huawei will need a US government license to buy American technology, which will surely be denied.
The US has taken this step after it has told its allies not to use Huawei’s 5G network equipment and imposing new tariffs on Chinese goods amid an escalating trade war.
The US believes that telecom equipment made by Huawei Technologies could be used to spy on the country and is under control by the Chinese state government. On the other hand, Huawei has always denied these allegations and said their equipment has no such threats, clarifying that its products are secure to use.