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US President Trump considering executive order to bar Huawei, ZTE purchases

29 December 2018

The names of the two companies will most likely be omitted in the order but, Commerce Department officials "would interpret it as authorization to limit the spread of equipment" made by Huawei and ZTE. If the reported executive order comes and states that this equipment must be replaced, it's estimated that the cost of such work would be $800 million to $1 billion for all RWA members to replace their Huawei and ZTE equipment.

BT also confirmed to the Daily Telegraph that Huawei technology is being removed from a network service designed for Britain's emergency services including police forces and ambulances. The order, which reportedly has not been finalized, would use the government's International Emergency Economic Powers Act as its foundation, which allows the White House to regulate and control commerce in the event of a national emergency. Most rural networks in the United States are using Huawei and ZTE telecom equipment, which is nearly four times cheaper than the competition.

"We've got to look at what partners such as Australia and the USA are doing in order to ensure that they have the maximum security of that 5G network", he said. It has come under global pressure this year after the United States and its allies including Australia and New Zealand started barring its equipment on concerns they could enable spying by China.

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"Some countries, without any evidence, are abusing the national security and politicizing and putting up all sorts of barriers on the normal scientific and technological exchanges - this is to shut themselves off from the openness, progress and fairness".

Asked about the case and whether it would add to tensions between China and Canada, Ms Hua said she did not have a grasp of the situation, but added: "The Chinese side has repeatedly made clear China's solemn and just stand".

A new United States government move targeting Apple rival Huawei and fellow Chinese telecom company ZTE may come as early as the beginning of 2019.

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In particular, the executive order would instruct the Commerce Department to block U.S. companies from buying Huawei and ZTE equipment that "pose significant national security risks".

Meanwhile Pelham Smithers, managing director of Pelham Smithers Associates, told "Squawk Box Europe" Thursday that it was "very dangerous" to put Huawei equipment into 5G infrastructure.

Huawei is a multinational telecommunications equipment company in China, which is a world leader in developing advance mobile internet technologies.

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US President Trump considering executive order to bar Huawei, ZTE purchases