US government bans companies from trading with Huawei

The US government has banned US companies from trading with Huawei and 70 companies related to Huawei. That’s what the US Department of Commerce said. Huawei now needs a license for trading.

The US ministry sees Huawei as a threat and will therefore place the Chinese company on the Entity List, Reuters reports. It is not listed there yet, according to the site of the list. That should happen in the coming days. Trade with American companies is necessary for Huawei, whose suppliers are located in the US.

It is likely that Huawei will apply for a license for trade or seek other suppliers outside the US. The Chinese company has not yet responded to the statement from the US Department. It has always firmly denied in the past that it poses a threat to the national security of the US or other countries.

US President Donald Trump has independently signed the decree that prohibits carriers from purchasing network equipment from companies that pose a threat to US security. In addition, the decree does not mention names of companies or countries and government officials do not want to mention names in explanations either. The signing was already coming. That decree would also be aimed at Chinese companies Huawei and ZTE.

The US has long lobbied against the use of Chinese network equipment in mobile networks and upcoming 5G networks. The country suspects that the Chinese government can spy through equipment from Huawei or ZTE. The country has never provided any evidence for this, which means that other countries often do not or only partially agree with this reasoning.