The white house intends to ban American companies from buying Huawei and ZTE equipment.

in forecasting •  6 years ago 

The President of the United States Donald Trump intends in January to introduce an emergency regime in the country, which will deprive American companies of the opportunity to purchase equipment from Chinese manufacturers Huawei and ZTE, Reuters reported citing informed sources.

This measure will be another attempt by the authorities to withdraw from the us market the two largest Chinese manufacturers of telecommunications equipment because of the danger of espionage by the Chinese government.

According to the Agency's interlocutors, the ban is contained in the Executive decree of trump, which has been considered for eight months. The document instructs the Ministry of Commerce of the United States to prohibit American companies from buying foreign equipment manufacturers, represents a "significant risk to national security." Although, according to sources, the order will not include Huawei or ZTE, in fact, it implies a ban on the purchase of products of these two companies. According to them, the work on the text of the document has not been completed yet.

The introduction of a ban on the purchase of telecommunications equipment Huawei and ZTE may affect the launch of 5G in the US, as large us companies are now looking for partners to purchase base stations for fifth-generation networks. In addition, the ban could hit many low-cost Huawei and ZTE Telecom operators who fear that they will have to remove equipment from their networks without compensation from the state.

In early December, the Japanese government banned the purchase of Chinese companies Huawei Technologies and ZTE telecommunications equipment for state institutions due to the risk of cyber espionage from Beijing. Later it became known that the British mobile operator EE working on a project to create a new communication system for police, first aid and emergency services, will also refuse to use Huawei equipment.

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It may be too late for the Trump administration to blockade their growth in the 5G space. Their progress may be delayed but anything that the US government does to slow them down will only bolster their commitment to this space.