Monday, March 30, 2020
United States Seeks to Ban American Firms from Exporting Components to Huawei
To Slow Huawei's Development Pace
United States Seeks to Ban American Firms from Exporting Components to Huawei
  • By Kim Eun-jin
  • March 20, 2019, 12:24
Share articles

The Washington government is considering banning U.S. companies from exporting key components to Huawei of China.

The United States is looking for alternatives as its pressure on allies to join its boycott of China’s electronics giant Huawei is not working as it has hoped.

The New York Times (NYT) reported on March 17 (local time) that the United States’ plan to pressure allies to exclude Huawei from the fifth-generation (5G) network construction projects is not working.

U.S. President Donald Trump has been asking allies to ban the use of Huawei equipment because it may be used for spying by the Chinese government.

However, countries, including Germany, India and the United Arab Emirates (UAE), have made it clear that they will not exclude Huawei equipment, causing cracks in the U.S. anti-Huawei front.

In particular, Britain and New Zealand, members of Five Eyes, which share confidential information with the United States, also decided not to ban the use of Huawei equipment.

This situation has been reflected to some extent in the Trump administration's review of executive orders to prevent U.S. companies from using Chinese 5G communications equipment. The NYT said the United States is also considering issuing a more aggressive administrative order that would prevent U.S. companies from selling key components needed for the production of 5G telecommunications equipment to Huawei.

The plan is to delay the development speed of Huawei and allow global competitors to secure time for improving the performance of their equipment.

The Washington government is also considering financing Huawei competitors in the United States and its allies to help them produce 5G equipment at a lower cost and compete with Huawei, which offers low prices and financial conditions.