China Trade War by Donald Trump Stopping Tech

18 May, 2019, 04:24 | Author: Wade Massey
  • China Trade War by Donald Trump Stopping Tech

Why, then, does the Government seem insistent in commissioning Huawei to build parts of the 5G network, against the advice of the USA government and of a former MI6 chief?

On Tuesday (May 14), a day before the executive order was signed, Huawei said that it would be willing to sign "no-spying agreements" with governments that are tired of the company being manipulated to serve the political purposes of China's state intelligence agencies.

"We oppose the act of any country to impose unilateral sanctions on Chinese entities based on its domestic laws, and to abuse export control measures while making "national security" a catch-all phrase", spokesperson Lu Kang said at a regular briefing on Thursday.

Beijing accused President Trump of engaging in industrial sabotage by using state security as "as a pretext for suppressing foreign business".

In February, Light Reading reported that service providers outside the USA and China were developing contingency plans in case of a Huawei ban.

At the same time, the USA and China's battle over trade continues, with President Trump raising tariffs on Chinese electronic components and other products up to 25%.

Ultimately, however, even if the United States and China do resolve their trade war, the battle for economic and tech supremacy between the world's two largest economies will drag on.

But Huawei says it has now signed more than 40 commercial 5G contracts around the world, including in Europe, the Middle East and Asia.

The White House said on Wednesday that Trump took the action to thwart "foreign adversaries who are actively and increasingly creating and exploiting vulnerabilities in information and communications technology infrastructure and services in the USA".

Otherwise poses an unacceptable risk to USA national security.

5G will enable revolutionary new technologies like artificial intelligence, driverless cars and automated gadgets and factories, and Huawei has the world's most advanced and cheapest 5G capacities in the world.

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A ban would also affect much larger and better-known U.S. equipment companies.

ENERGY: Benchmark U.S. crude advanced 70 cents to $62.73 a barrel in electronic trading on the New York Mercantile Exchange while Brent crude, the worldwide standard, added 64 cents to trade at $72.41 per barrel.

"Huawei has denied those charges, and its chief executive [Ren Zhengfei] has said he would shut down the company rather than obey Chinese government orders to intercept or divert Internet traffic", the New York Times wrote.

A Trump administration decision to restrict the sale of USA technology to Chinese telecommunications company Huawei will disrupt global supply chains, say analysts, ramping up pressure on US allies reluctant to join in efforts to shut out Huawei from advanced 5G mobile networks.

Members of Congress and administration officials said the move would make it hard for Huawei to sell many products because of its dependence on US suppliers. "What we have prepared has already been used in some of our products in the Chinese market", Huawei Chairman Eric Xu said.

US President, Donald Trump had a call on Wednesday in a trade dispute with China a national state of emergency for the telecommunications sector.

Mallory was convicted of spying, and he faces up to life in prison (he will be sentenced on Friday).

These possible remedies include enacting only a partial ban, allowing Huawei to sell its products to a specific group of customers, and for independent monitoring of its technology and networks.

How have other countries responded?

France, Germany and Belgium have not banned Huawei technology, but Japan has from public contracts. The latest move against the firm comes amid a worsening trade war between Beijing and Washington, after talks expected to bring a breakthrough fell apart, resulting in billions of dollars in further tariffs from both sides. But let's not forget the fact that strategic competition between United States and China is a reality now.

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