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Economy· Govt· Policy

U.S. Commerce Department blocks Huawei and ZTE access to US technology

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minutes 2019/05/16 03:14:18
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May 16, 2019 (China Knowledge) - Declaring a national emergency, an executive order prohibiting U.S. companies from transactions involving information technology and services deemed as national security risk. This essentially allows U.S. to ban all business with Chinese telecom company Huawei.

The U.S. Commerce Department has prepared a so-called Entity List, including Huawei and its affiliates. In this list, companies must seek a license to buy or receive U.S. technology.

"The order prevents American technology from being used by foreign-owned entities in ways that potentially undermine U.S. national security or foreign policy interests,” Secretary of Commerce Wilbur Ross said.

U.S. President Donald Trump signed the executive order on Wednesday. Relevant U.S. government agencies are tasked to conduct annual evaluation of security risk from information and communications technology or services linked to a “foreign adversary”. An initial assessment is to be reported within 40 days.

Last year, United States banned American government agencies and contracts from using equipment made by Huawei and ZTE due to national security risks. The Federal Communications Commission also refused state telecom China Mobile to enter U.S. market on the same grounds.

Huawei filed a lawsuit in March against the U.S. government declaring its exclusion of the company from government contracts is unlawful.

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