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Trump bans US firms from doing business with foreign telcos

(Image credit: Image source: Shutterstock/stock_photo_world)

US companies are banned from acquiring communications gear from certain foreign companies under a new presidential ruling.

President Trump has signed an executive order under which US companies are not allowed to use telecommunications technology from foreign companies which the state considers a security threat.

Although neither Huawei, or China as a country, are being mentioned in the executive order (according to media reports), but it is pretty obvious the order is targeting none other than the Chinese.

Soon after signing the order, Huawei was placed on the country’s so-called Entity List, which some people refer to as the “death penalty”.

This is just the latest in a string of moves the US is doing against China and its companies, as the trade war between the two rages on. Huawei commented that it’s the US and its people that will lose most from this move.

"Restricting Huawei from doing business in the US will not make the US more secure or stronger; instead, this will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment," the company said in a statement.

The Washington Post claims small and rural wireless carriers will be the one to suffer, as many of them use Huawei’s cheaper gear. “Most large carriers don’t use Huawei equipment,” it added.

It seems as there is still plenty of uncertainty around the order. CEO of Triangle, a small network using Huawei’s tech, says “We’ll just have to wait and see”.

China and the US have been exchanging blows in recent months, with the US advising its allies not to use Huawei, and China banning the sale of certain iPhone models in the country.

The US considers Huawei a threat to national security, because of the possibility of the company working with the Chinese government to spy on the West.

Image source: Shutterstock/stock_photo_world