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Potential executive order could ban US companies from using Huawei or ZTE hardware

Huawei and ZTE could be facing further commercial bans in the US. (Source: Pocket Now)
Huawei and ZTE could be facing further commercial bans in the US. (Source: Pocket Now)
Reuters has reported that President Donald Trump might issue an executive order that would effectively ban US companies from using telecommunications hardware from either Huawei or ZTE. Both Chinese companies have faced accusations of sanction-breaking and national concerns over privacy and the possibility of being utilized for state-sponsored espionage. ZTE recently paid a huge fine of US$1.4 billion for not complying with US trade restrictions.

Huawei and ZTE had already suffered a US-related blow when the American government ordered that telecommunications devices from either company were not allowed to be used by government officials or agencies. Now it seems an even bigger problem could be looming on the horizon for the Chinese tech firms. According to sources speaking to Reuters, the Trump administration could be preparing an executive order that would prohibit all US companies from purchasing or using equipment made by either of the marked companies.

Apparently, a law known as the International Emergency Economic Powers Act could be triggered that would allow President Trump to decide whether Huawei and ZTE’s commercial activity could be considered a security threat to the United States. Although it is expected the order would likely not specifically name the two Chinese firms, it is believed that they would be effectively hamstringed by such an event.

Telecoms providers in rural areas of the US are also likely to be hit hard by the executive order if it’s carried out. Many of them use the cheaper hardware from Huawei and ZTE, and it has been estimated that it would cost up to US$1 billion to replace all the potentially banned equipment used by members of the Rural Wireless Association (RWA).

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 12 > Potential executive order could ban US companies from using Huawei or ZTE hardware
Daniel R Deakin, 2018-12-28 (Update: 2018-12-28)