Trump's order clear hurdles to bar Huawei from United States telecommunication Network

Trump signs executive order clearing the way to ban Huawei from U.S. networks

Trump signs executive order clearing the way to ban Huawei from U.S. networks

That all changed in a heartbeat this week.

Soon after the executive order - "Securing the Information and Communications Technology and Services Supply Chain" - was signed, the Bureau of Industry and Security (BIS) of the Department of Commerce announced that it will be adding Huawei Technologies Co.

Other companies at risk include Qualcomm, Skyworks and Micron.

Who will go down in the battle between the United States and Huawei?

The Chinese manufacturing giant has sent an e-mail to its employees on the USA inclusion of Huawei in the "list of entities". First came an executive order that vividly paints a picture of foreign adversaries sabotaging U.S. communications networks and compromising critical infrastructure.

Today, about 40 U.S. operators fall into that category, and there is little sign they are prepared for a ban.

Huawei has called the ban unfair and "in no one's interest", reports NPR.

In Thailand, Huawei has already launched a 5G test project. China's progress should not be seen as a threat, but vast opportunities for cooperation.

Carpet-bombing the supply chain It is not just U.S. operators that may suffer.

In a Federal Register notice released on Thursday, the Commerce Department said the new curbs, first announced the day before, would apply to Huawei and affiliated companies around the world from China to Germany and Madagascar. A study by economists from the Federal Reserve Bank of New York, Columbia University, and Princeton University found that the burden of Trump's tariffs - including taxes on steel, aluminum, solar panels falls entirely on U.S. consumers and businesses who buy imported products.

Huawei would be the largest business ever put under export controls. That was further demonstrated in Argentina back in November past year. If Huawei "can't get the widget or the part or the software update to keep functioning, then those systems go down", said Wolf, a partner at the Washington law firm Akin Gump.

The department has charged several Chinese intelligence officials and operatives over a decade-long concerted effort to steal engine technology from U.S. aviation giant Boeing and its suppliers.

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Huawei has more than 13,000 component and service suppliers worldwide.

In the end, Trump's decision will affect American companies as much as Chinese companes.

Meanwhile, memory chips used in Huawei smartphones that are produced by American firms like Micron could be substituted out for South Korean products. Broadcom, another components vendor, saw a 2.3% dip.

An employee of Huawei told Nihon Keizai Shimbun that if transactions with USA suppliers become more hard, it could have a bigger impact on telecommunication devices than smartphones and that implementation of 5G services in other countries could be delayed due to a delay in supply of Huawei 5G telecommunication equipment.

Huawei says it supplies 45 of the world's top 50 telephone companies.

The domestic economic impact will be restricted mostly to small rural carriers for whom Huawei equipment has been attractive because of its lower costs. The US has warned its allies against using Huawei equipment for 5G rollout, citing spying threats from China.

Want to know more about 5G? Last year, Huawei was the world's second-largest mobile phone supplier by sales after Samsung. It is also trying to become more self-reliant. HiSilicon, its semiconductor business, is increasingly positioning itself as a rival to the likes of Qualcomm and Nvidia, a U.S. manufacturer of graphics processing units, which could play a vital role in artificial intelligence.

Global technology companies are anxious about the effects of these moves on the technology industry.

"We will be able to maintain our operations globally", Purdy said.

Nuking the network operators Huawei has reason to be anxious. A similar restriction on ZTE a year ago pushed the company to the brink of bankruptcy before a settlement with Washington turned down the heat. The worry is that customers affected by the ban are taking their business elsewhere. He, however, did not divulge any details as to how China planned to strike back.

Huawei says company shares are owned by employees and Ren insists it enjoys no favour from Beijing, but analysts dispute that.

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