President Donald Trump is giving companies until August 13 before the States imposes total ban on Chinese made technology goods from being used or purchased. The President has specifically identified master suspect Huawei Technologies and 4 other Chinese tech companies.
This comes of his White House speech this week claiming China to have stolen valuable intellectual properties from American companies which were then used for their own corporations to grow, citing Huawei as an example. A new Executive Order was signed banning non of these Chinese companies being allowed to do business in America and equipment’s which have components from these companies to enter the country. The list of banned entities includes ZTE, camera maker HangZhou HikVision, thermal screen manufacturer Zhejiang Dahau and Hytera Communications.
US is not alone on this, just recently the UK Government decided to pull out from its agreement with Huawei and stop all business dealing with the company, in fact it has instructed telecommunications firms to phase out Huawei equipment’s from its infrastructure in the next 2 years. With the order in place, companies and nations worldwide will be thinking twice before doing business with the banned entities on fear of being antagonised by USA or having their own products enter the country if they were found to have components made by these vendors. This was particularly feared by 800 Japanese enterprises who use them in their own products.
America spends US$580 billion a year on procuring high quality security equipment’s, those keen to be part of the spending would have to toe the line and adhere to the policies introduced or face being barred from doing business with Washington. Japan alone secured US$1.5 billion of that budget in 2019.
Softbank, NTT Data, Vodafone, BT Telecoms, Apple are all switching from using any technology from these banned list. The global supply chain for technology is dominated by Chinese companies but with the latest move by Trump, we could possibly witness the collapse of a multi billion dollar network and the clipping of a rising tech superpower.
China has called on the Order as an act of jealousy, with its Foreign Minister saying “United States cannot tolerate other countries having something better, so it abuses its state power to suppress Chinese enterprises, such as Huawei, under flimsy excuses”
Trump has stated that national security is at risk if hardware technology made by these companies are used, and the President has boasted that he is personally persuading other nations to stop using them as well. UK and Australia has heeded with Japan to follow suit, this is spelling the end of Huawei and Chinese run enterprises.