The U.S. President Donald Trump issued an executive order on Wednesday. As per the orders the US firms can’t use telecom gear from companies that are tagged as national security threats.
This will grow the tensions between China and the U.S. The issue of Huawei having a risk of spying to Western infrastructure networks, will grow.
Post the issuing of order the Commerce Department, announced adding of Huawei to the list. This list includes the names of companies that the government considers is undermining for American interest. With adding Huawei in the list, Trump id putting additional pressure on China in trade talks.
Officials belonging to senior administration told various reporters that, the document replicates Trump’s promise to ensure the security of the nation’s networks from the threat of foreign adversaries. However, other US officials have responsively pushed partners to stop the use of the Huawei gear, mentioning that the products from the company will likely give the Chinese government a way to spy on otherwise sensitive US communications. The Trump administration will outline more rules over the period of the next 150 days.
In response to the Ban, Huawei mentioned that banning them from the United States will impact American businesses and consumers, and also further hamper the US efforts to grow 5G technology.
Impacts on Small business
The proposal will be expensive for various small and other rural wireless carriers. Most of these carriers use the equipment from Huawei as it is cost effective. However, most of the big carriers are not using Huawei equipment.
While the order is likely to be applicable on previous purchases of telecom equipment. There is still no clarity on who will bear the cost of removing the existing network gear.
The American telecom companies that work with foreign-made equipment are still figuring the way it will be implemented.
Craig Gates, the CEO of Triangle using Huawei gear, said the company will be facing problems due to the same. Various members of the trade associations are already discussing if the federal government will bear the cost of removing equipment.