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US blacklists Huawei, places it on entity list

Press Trust of India  |  Washington 

Escalating the bruising trade war with China, has signed an order barring American from installing the deemed a national security threat, a move apparently aimed at banning Chinese giant from US networks.

The decision taken on Wednesday risks escalating tensions with as the world's two largest economies clash over whether the world's largest provider of equipment poses a spying risk to Western infrastructure networks.

Under the order that will take effect in the coming days, will need a license to buy American technology.

Soon after the order - "Securing the Information and and Services Supply Chain" - was signed, the (BIS) of the announced that it will be adding Ltd and its affiliates to its Entity List.

The alleged that Huawei was engaged in activities that are contrary to US national security or foreign policy interest. As a result, sale or transfer of American technology to a company or person on the Entity List requires a license issued by the BIS, and a license may be denied if the sale or transfer would harm US national security or foreign policy interests.

The listing will be effective when published in the Federal Register.

"This action by the Commerce Department's Bureau of Industry and Security, with the support of the of the United States, places Huawei, a Chinese-owned company that is the largest equipment producer in the world, on the Entity List," said.

This will prevent American technology from being used by foreign-owned entities in ways that potentially undermine US national security or foreign policy interests, Ross said, adding that it has been done at the direction of the

In the order, Trump determined that the unrestricted acquisition or use in the US of information and or services that are subject to the jurisdiction or direction of foreign adversaries augments the ability of those foreign adversaries to create and exploit vulnerabilities in information and or services and that can have potentially catastrophic effects, and thereby, constitutes an unusual and extraordinary risk to US national security, foreign policy and economy.

Trump "is incredibly" committed to preventing adversaries from turning American information and into a liability as opposed to an asset, a senior administration said.

The order addresses this imperative by empowering the to prohibit transactions involving information and communications technology or services that are designed, developed, manufactured or supplied by persons owned by or controlled by or subject to the jurisdiction or direction of a foreign adversary, the said.

Responding to questions, the said the order was directed at any transaction involving information and communications technology or services and controlled by or subject to the jurisdiction of a foreign adversary that meets the criteria enumerated in the executive order.

Regulations issued by the in the coming days will detail how determinations will be made on whether a transaction meets the criteria listed in the executive order, the official said.

Cutting across party lines, US lawmakers praised the administration's announcement.

"This is a needed step and reflects the reality that Huawei and ZTE represent a threat to the security of US and allied Under current Chinese security laws, these and other based in are required to provide assistance to the Chinese state," Senator said.

"Huawei is a state-directed instrument of national power used by the and to destroy their international competitors, undermine US companies, on foreign countries and steal intellectual property and trade secrets," Senator said.

Rubio said the administration deserved enormous credit for its efforts to comprehensively the threat that Huawei and other foreign state-directed pose through their efforts to undermine and endanger critical US systems and infrastructure.

"Earlier this year acted well within our constitutional authority to block Huawei from our market due to concerns with the company's links to China's intelligence services," he said.

"As the administration continues to seek a fair and enforceable trade deal with China, I urge them to stand strong on Huawei and hold the and its state-owned and state-directed enterprises accountable for their hostile actions threatening US economic and national security," Rubio added.

"Let's cut to the chase: China's main export is espionage and the distinction between the and Chinese 'private-sector' businesses like Huawei is imaginary," Senator said.

The is right to recognise this reality and issue this order, he said.

The US and are locked in a trade battle that has seen mounting tariffs, sparking fears the conflict will damage the global economy.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 16 2019. 09:45 IST
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