China’s Huawei Dealt A Direct Blow, Has Limited Ability To Acquire Tech

Secretary of State Mike Pompeo. Benzinga file photo by Dustin Blitchok.

Tanzeel Akhtar Benzinga August 17, 2020

U.S. Secretary of State Mike Pompeo says the U.S. has dealt a direct blow to China’s Huawei Technologies and the Chinese Communist Party by further limiting the company’s ability to acquire U.S. technology, which Pompeo says would compromise the integrity of the world’s networks and Americans’ private information.

Trump Administration Clamps Down On Huawei: Huawei is an arm of the Communist Party’s “surveillance state,” the press release from Pompeo’s office says.

The measures announced Monday are intended to protect U.S. national security, citizen privacy and the integrity of 5G infrastructure, according to the government. 

The Commerce Department hadded 38 Huawei affiliates to its Entity List, which identifies foreign parties prohibited from receiving certain sensitive technologies, and has allowed Huawei’s temporary general license to expire.

Huawei has previously denied involvement in spying activities. 

The Previous Huawei Ban: This is not the first time Huawei has come under scrutiny. In May 2019, the Trump administration first added Huawei to a list of companies that U.S. firms can no longer trade with unless they have a license. The “entity list” includes companies that are banned from acquiring technology from U.S. firms without government approval.

Trump told Chinese President Xi Jinping in July 2019 at the G20 summit that he would allow U.S. companies to sell products to Huawei.

The U.S. has also previously urged members of the Five Eyes — which is an Anglophone intelligence alliance comprised Australia, Canada, New Zealand, the U.K. and the U.S. — to exclude Huawei from the construction of new telecommunications networks.

The U.S. claims the company could provide covert access for Chinese intelligence collection, making secure data vulnerable.

In July of this year, the U.K also said it is banning China’s Huawei’s 5G from next-generation mobile networks by 2027 under a new plan to protect critical systems from security threats.

Source: Benzinga


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