UPDATE 1-China's Huawei, 70 affiliates placed on U.S. trade blacklist
Under the order that will take effect in the coming days, Huawei will need a U.S. government license to buy American technology. Huawei did not immediately comment. Commerce Secretary Wilbur Ross said in a statement President Donald Trump backed the decision that will "prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests."
The dramatic move comes as the Trump administration has aggressively lobbied other countries not to use Huawei equipment in next-generation 5G networks and comes just days after the Trump administration imposed new tariffs on Chinese goods amid an escalating trade war. The Commerce Department said the move comes after the U.S. Justice Department unsealed an indictment in January of Huawei and some entities that said the company had conspired to provide prohibited financial services to Iran. The department said it has a reasonable basis to conclude that Huawei is "engaged in activities that are contrary to U.S. national security or foreign policy interest."
Huawei reported first-quarter revenue of $27 billion last month and said it had shipped 59 million smartphones in the first quarter. In March 2016, the Commerce Department added ZTE Corp to the entity list over allegations it organized an elaborate scheme to hide its re-export of U.S. items to sanctioned countries in violation of U.S. law.
The restrictions prevented suppliers from providing ZTE with U.S. equipment, potentially freezing the Huawei rival's supply chain, but they were short-lived. The U.S. suspended the restrictions in a series of temporary reprieves, allowing the company to maintain ties to U.S. suppliers until it agreed to a plea deal a year later. In August, Trump signed a bill that barred the U.S. government itself from using equipment from Huawei and ZTE.
Senator Ben Sasse, a Republican, said "Huawei's supply chain depends on contracts with American companies" and he urged the Commerce Department to look "at how we can effectively disrupt our adversary." (Reporting by David Shepardson in Washington and Karen Freifeld in New York Editing by Chris Reese)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- READ MORE ON:
- Chamber of commerce
- Government agency
- Executive Branch
- Donald Trump
- Part of speech
- Spare part
- Euro Car Parts
- U.S. state
- United States Marshals Service
- Constitutional amendment
- Wilbur Ross
- System Administrator
- Business administration
- Health administration
- Entity Framework
- Array data structure
- Data type
- Golf equipment
- Audio equipment
- Equipment rental
ALSO READ
EXCLUSIVE-Chinese buyers cancel or postpone 1 million metric tons of Australian wheat, sources say
EXCLUSIVE-Chinese buyers cancel or postpone 1 million metric tons of Australian wheat, sources say
Government supports 10th Crankworx Rotorua from 16-24 March 2024
EXCLUSIVE-Chinese buyers cancel or postpone Australian wheat buys amid global oversupply
EXCLUSIVE-Chinese buyers cancel or postpone Australian wheat buys amid global oversupply