China threatens United States over Huawei blacklisting as trade tensions rise

18 Mai, 2019, 03:59 | Auteur: Anatole Charbonneau
  • China threatens United States over Huawei blacklisting as trade tensions rise

According to a report released by Gartner earlier this year, Huawei "s semiconductor procurement expenditure reached $ 21.131 billion in 2018, a 45% year-on-year increase".

Separately: The Commerce Department said it was adding Huawei to its "Entity List", which stops it from buying components from U.S. companies without government approval. He served as assistant secretary of commerce for export administration during the presidency of Barack Obama.

In recent months, the USA government has taken a number of steps against the firm, including getting Canadian authorities in December to arrest Huawei CFO Meng Wanzhou over allegations of defrauding several banks by concealing payments from Iran in violation of US sanctions. He added that if Huawei and its business partners cannot get the computer software or equipment they need, their operations could collapse.

Donald Trump has signed an executive order barring United States companies from using telecommunications equipment made by firms posing a national security risk.

The executive order did not name Huawei specifically. "What we have prepared has already been used in some of our products in the Chinese market", Huawei Chairman Eric Xu said.

Officials in China said U.S. aggressiveness could hurt trade talks, which appeared to have hit an impasse in the past week as Washington hiked tariffs on Chinese goods and Beijing retaliated with higher duties on United States products.

A member of Huawei's reception staff walks in the foyer of a building at the company's Bantian campus in April in Shenzhen, China.

"If Australia can blackball Huawei as its 5G provider, the United Kingdom can certainly do the same without undue concern about the consequences", he said.

A US campaign to try to cut off China's access to USA technology and products will only force China to increase its own nationalist stance regarding technology development. It has never before been used in a way that restricts an entire industry.

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Huawei, the world's largest telecommunications equipment maker, did not immediately respond to a request for comment.

Huawei, meanwhile, has always disputed claims that its equipment can be used for spying purposes, relying on partners including European and USA tech companies to make its case.

"China has said many times national security issues should not be abused".

In a paper last month, they said the company is owned by a shadowy trade union, noting that in China such unions are invariably government-controlled.

The company also tried a bit of de-escalation diplomacy, saying it was willing to "communicate with the U.S.to ensure product security".

"Let us make one thing clear: you can criticise many things about the Trump administration, (but) there is effectively zero doubt Huawei is a branch of the PLA and actively engages in espionage for Beijing", he tweeted.

In a statement, Federal Communications Commission Chairman Ajit Pai called the executive order a "step toward securing America's networks".

"Huawei being unable to manufacture network servers, for example, because they can't get key US components would mean they also stop buying parts from other countries altogether", said an executive at a Huawei chip supplier. "However, it is regrettable that the USA side unilaterally escalated trade disputes, which resulted in severe negotiating setbacks". "It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs and disrupt the current collaboration and mutual trust that exist on the global supply chain".

Its equipment is the backbone for telecom networks that carry much of the planet's data and communications traffic.

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