Is Huawei under checkmate position amid trade war between US and China

Trump administration blacklisted Huawei and 67 of its affiliates scattered across 26 countries Friday with immediate effect to curtail access of the technology company’s US suppliers.

Commerce Department said the affiliates are private subsidiaries owned by Huawei Technologies Co. to conduct business in various countries or cities.

The move would cripple businesses of the company and probably to disrupt 5G wireless networks rollout around the world.

Earlier this week the Commerce Department said Huawei would soon be put on Entity List, which mean a special license obtaining is to be made mandatory to sell products.

According to Commerce Secretary Wilbur Ross the Trump administration has given 150 days to the department to establish a process to screen purchases of domestic companies from Chinese firm.

Lately trade war with China has rattled global markets and both allies and foes of United States are in pressure to avoid using 5G networks of Huawei.

The move would cripple businesses of the company and probably to disrupt 5G wireless networks rollout around the world.

However, Ross added that restrictions on Huawei is a separate matter from trade negotiations with China.

He said, “The purpose we have in mind here is we think there is a significant danger to national security and to our foreign policy of the existing situation at Huawei.”

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Paul Linus

Paul Linus is a professional writer associated with several online news media houses. He writes on international politics and business. He can be reached here - knowledgeherald@gmail.com
Paul Linus

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