To protect US computer networks from “foreign adversaries,” President Donald Trump declared a national emergency on Wednesday evening.
He signed an executive order that effectively restricts companies in the US from using foreign telecoms which is heavily believed to pose national security risks.
The order does not specifically name any company, but is believed to refer to Huawei.
The Chinese tech giant said in a statement that barring its business in the United States would only adversely affect Americans companies.
Few countries, led by the US, have raised concerns in the past few months that Huawei products could be used by China for surveillance
Huawei has said in a statement that its work does not pose any threats at all and says it is not dependent on the Chinese government.
Huawei released a statement on Thursday in which the company said: “Restricting Huawei from doing business in the US will not make the US more secure or stronger.
“Instead, this will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment, and eventually harming the interests of US companies and consumers.”
The statement also included, “unreasonable restrictions on Huawei raised other serious legal issues”. Huawei has outright denied the allegations against them.
On Tuesday, its chairman Liang Hua said it was “willing to sign no-spy agreements with governments” during a meeting in London, as concerns over the security status of its widely-used products used in next-generation 5G mobile networks continued to grow.
President Trump doesn’t specifically name or point exclusively to Huawei in his executive order but the purpose is clear: to keep China’s national champion out of the US.
Huawei has repeatedly reported that if the United States ban Huawei from its networks, they are going to be the ones to lose out and not Huawei.
And that’s absolutely true. Reason being that even without the United States market, Huawei controls at about 40 to 60% of the networks around the globe, industry analysts say.
However, Huawei may not necessarily need the US market, but it definitley needs the key components that it gets from the United States.