US Asks Allies to Shun Huawei Equipment

US Asks Allies to Shun Huawei Equipment

Huawei is effectively blacklisted from supplying to the U.S. government contractors and more unofficially, from commercial carriers and operators too. In August, Australia banned Huawei and ZTE from providing 5G technology there due to national security concerns as well. Each country has imposed tariffs on the other's products and threatened more.

"We engage with countries around the world about our concerns regarding cyberthreats in telecommunications infrastructure", a USA official told WSJ.

ZTE Corp is another Chinese company that has been in trouble with Washington, and the company's value has almost halved this year after the U.S. government prohibited American firms selling parts to it. ZTE ended up settling for $1.4 billion to lift the ban. Earlier this year, lawmakers introduced the Defending U.S. Government Communications Act, which would ban government agencies from using equipment from ZTE and Huawei. The United States is also considering increasing financial assistance for telecom development to those nations that would abandon Huawei products in the public and commercial sectors.

Asked for comment on a Wall Street Journal report regarding China's Huawei Technologies, a foreign ministry spokesman on Friday said China hoped the relevant countries could provide a fair environment for its companies.

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Europe this week stepped up its scrutiny of Foreign Direct Investment specifically out of China, after absorbing nearly double the amount of Chinese money that was invested in the USA over the last decade.

Huawei and ZTE, the other main networking vendor from China, have always been deemed security risks by USA politicians, resulting in an effective ban on the deployment of technology from those companies in the US. No evidence has ever been made public and company links to the Chinese government are tenuous. They are also thought to have contacted counterparts in Britain.

The US's push, which was reportedly seeded before the current administration took over, reflects the fears of many analysts that Chinese firms operating in bad faith might embed themselves just as the next-gen wireless 5G network is rolled out worldwide.

The US government has long sounded the alarm bells over Chinese firm Huawei.

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