Major backlash as US attempts to blacklist Huawei

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Publish date 21 May 2019
Issue Number 1782
Diary Legalbrief eLaw
A terrifying tussle between two super powers has left millions of Huawei customers scratching their heads over the fate of the of the tech giant. Legalbrief reports that US President Donald Trump last week barred Huawei from the US market ...

A terrifying tussle between two super powers has left millions of Huawei customers scratching their heads over the fate of the tech giant. Legalbrief reports that US President Donald Trump last week barred Huawei from the US market and added it to a list which would restrict US sales to the firm amid the escalating trade war with Beijing. Huawei's involvement in activities ‘contrary to national security or foreign policy interests’ was cited as the reason. Huawei is a rapidly expanding leader in 5G technology but remains dependent on foreign suppliers. It buys about $67bn worth of components each year, including about $11bn from US suppliers. A report on the eNCA site notes that Huawei founder and CEO Ren Zhengfei hit back at Washington’s move, saying ‘we have already been preparing for this’. Ren's military background and Huawei's opaque culture have fuelled suspicions in some countries that the firm has links with the Chinese military and intelligence services. Huawei is also the target of an intense campaign by Washington, which has been trying to persuade allies not to allow China a role in building next-generation 5G mobile networks. ‘We have not done anything which violates the law,’ Ren said, adding the US measures would have a limited impact.