Trump order clears way for barring Huawei from U.S. telecommunications networks

Donald Trump to issue order effectively blocking Huawei from US

President Trump on Wednesday signed an executive order to bar US companies from using telecommunications firms deemed a national security risk, a move targeted at both present and future liabilities but one that is poised to affect China's Huawei Tech. Huawei is the biggest global maker of switching equipment for phone and internet companies, but it has also spent a decade fighting accusations that it facilitates Chinese spying.

So can it please be allowed to put 5G modems everywhere?

The US has been actively pushing other countries not to use Huawei's equipment in next-generation 5G wireless networks, which it calls "untrustworthy".

The president is expected to sign an executive order (EO) invoking the International Emergency Economic Powers Act, which gives the president the ability to regulate aspects of commerce that may pose a security risk to the U.S.

Trump's action comes just days after US-China trade talks broke down without a deal, and the US placed into effect a tariff increase on billions of dollars' worth of Chinese imports. Huawei, which has repeatedly denied such allegations, did not immediately comment on the executive order.

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The order did not specifically mention any countries or companies, but it would especially affect the Chinese telecommunications company Huawei.

The US told allies not to use Huawei's technology to build new 5G telecommunications networks because of concerns it could be a vehicle for Chinese spying.

Early this year, the Justice Department unsealed criminal charges against Huawei, a top company executive and several subsidiaries, alleging the company stole trade secrets, misled banks about its business and violated US sanctions.

Huawei Technologies Chief Financial Officer Meng Wanzhou is escorted by security as she leaves her home in Vancouver, Canada, on May 8, 2019.

Senator Ted Cruz said the order would help protect 5G networks from Huawei.

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Federal Communications Commission Chairman Ajit Pai recently said he was waiting for the Commerce Department to express views on how to "define the list of companies" that would be prohibited under the FCC proposal.

China's Foreign Ministry accused the USA of "deliberately discrediting" Chinese companies. In December, Huawei CFO Wanzhou Meng was arrested in Canada on suspicion of violating US sanctions concerning Iran.

The issue has taken on new urgency as USA wireless carriers look for partners as they roll out 5G networks.

But it will affect small, rural carriers, some 25 percent of which use either Huawei or ZTE equipment in their networks.

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