The whole thing would be a big flipping deal! One for which there would be major, major consequences and far-reaching fallout. Currently, Huawei sells equipment in 170 countries.Imagine, if you will, that a special counsel appointed by the federal government declared in a court filing that he had evidence that a major political figure-let’s call her Hillary Clinton-had paid spies to infiltrate the White House and run surveillance on Donald Trump in order to frame him as a foreign asset. It estimates that 25 percent of its members had Huawei or ZTE equipment in their networks, it said in a filing to the Federal Communications Commission earlier this month.Īs Sputnik pointed out, the news of the possible ban followed questions from Defense Secretary Gavin Williamson, who expressed serious concerns over the involvement of Huawei in Britain’s 5G network, suggesting that Beijing sometimes acted “in a malign way.” But even if it loses access to the US market, Huawei’s global expansion and its leadership in the 5G space are expected to continue to bolster profits and growth. The RWA represents carriers with fewer than 100,000 subscribers. The company is so central to small carriers that William Levy, vice president for sales of Huawei Tech USA, is on the board of directors of the Rural Wireless Association. wireless companies have cut ties with Huawei in particular, small rural carriers have relied on Huawei and ZTE switches and other equipment because they tend to be less expensive. Industry officials are divided on whether the administration could legally compel operators to do that. Rural operators in the United States are among the biggest customers of Huawei and ZTE, and fear the executive order would also require them to rip out existing Chinese-made equipment without compensation. They’ve expressed concerns that a ban would require them to rip out and scrap their equipment at an immense cost. Rural telecoms providers in the US – those with fewer than 100,000 subscribers – are particularly reliant on equipment made by both companies. The feud between the US and Huawei has obviously been escalating in recent months as the US has embarked on an “extraordinary influence campaign” to convince its allies to ban equipment made by both companies, and the arrest of Huawei CFO Meng Wanzhou in Canada has also blossomed into a diplomatic crisis of sorts.īut the real reason issuing a ban on both companies’ equipment is seen as a priority is because Huawei’s lead in the race to build 5G technology is making its products more appealing to global telecoms providers. The executive order has reportedly been under consideration for eight months, since around the time that the US nearly blocked US companies from selling parts to ZTE, which sparked a mini-diplomatic crisis, which ended with a deal allowing ZTE to survive, but pay a large fine. Back in August, Congress passed and Trump signed a bill banning the use of ZTE and Huawei equipment by the US government and government contractors. The IEEA allows the president the authority to regulate commerce in the face of a national emergency. Though it wouldn’t explicitly name Huawei or ZTE, the ban would arise from Commerce’s interpretation. The order would invoke the International Emergency Economic Powers Act to order the Department of Commerce to prohibit the purchase of equipment from telecoms manufacturers that could threaten national security. After the US government elicited outrage from the Chinese due to its attempts to convince its allies to bar the use of equipment made by telecoms supplier Huawei, President Trump is apparently weighing whether to take another dramatic antagonistic step that could further complicate trade negotiations less than two weeks before a US delegation is slated to head to Beijing.Īccording to Reuters, the White House is reportedly considering an executive order that would ban US companies from using equipment made by Huawei and ZTE, claiming that both companies work “at the behest of the US government” and that their equipment could be used to spy on US citizens.

Trump considering spy network