Trump’s Government May Issue an Executive Order to Ban Huawei and ZTE from US

Business

The US President Donald Trump is thinking about an executive order to announce a national emergency. The move could ban U.S. companies from using telecommunications equipment developed by Chinese tech giants Huawei and ZTE. The United States claims that the two companies work under the command of the Chinese government. Thus, the telecommunication equipment could be used to spy and observe US citizens. Whereas, In China, the move would be taken as a new explosion on account of the ongoing trade war between the two companies. The arrest of Meng Wanzhou, Huawei’s chief financial officer increased the stress between the US and China.

Although, the move to announce a national emergency could be the latest step by the Trumps government to cut ZTE and Huawei technologies. The move may throw out China’s network equipment giants out of the U.S. market. The executive order has been under consideration since past eight to nine months. Besides, the Trumps government would issue the order. It would instruct the Commerce Department to block U.S. companies from purchasing networking tools from foreign countries. While the order is doubtful to name Huawei and ZTE. Currently, the draft including the text for the order has not been finalized.

At the same time, the order would probably appeal the International Emergency Economic Powers Act. It is a law that offers power to the President to control Congress in case of a national emergency that threatens the U.S. On the other hand, rural operators in the US are among the massive consumers of Huawei and ZTE. Thus, they fear that they would need to remove current China-made equipment without any recompense. Currently, the giant US companies have cut associations with Chinese companies. But some small-scale companies still depend on Huawei and ZTE because China-made equipment tends to cost less. The Wall Street Journal firstly reported about the executive order in May. But the order is still under consideration and not yet issued.

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