Huawei offers to sign a no-spy agreement with governments

Donald Trump to issue order effectively blocking Huawei from US

United States President Donald Trump signed an executive order on Wednesday to stop American companies from using telecommunications equipment made by technology firms that pose a national security risk.

The emergency order gives the Secretary of Commerce the authority to block any transactions that would pose "undue risk of sabotage to or subversion" of IT or communications technologies and services, or "undue risk of catastrophic effects on the security or resiliency of. critical infrastructure or the digital economy".

The status of Huawei and ZTE has taken on new urgency as USA wireless carriers rollout 5G networks.

Despite emphatic denials from the Chinese tech giant, there are still significant suspicions around the world about how close Huawei is to the Chinese government and whether, if expected to, it would plant back doors in its equipment to allow remote access. Huawei's founder and president, Ren Zhengfei, denied the allegations in an interview with "CBS This Morning" in February.

Huawei has always been seen as a front for spying by the Chinese military or security services, but the company has denied the allegations.

US officials say Huawei can build vulnerabilities, or backdoors, into equipment. "The Americans will assume that everything we share with Germany will end up with the Chinese", the official told TheWSJ, referring to what would happen if Germany continues dealing with Huawei.

"Despite the fact Huawei has its headquarters in China, we are actually a globally operating company", he said.

Shares fall in Asia after no deal in China-US trade talks
The U.S. doesn't import much steel or aluminum from China, but Trump has alleged that his actions targeted Chinese production. The Nasdaq added 0.1% to 7,916.94, while the Russell 2000 index of small company stocks picked up 0.2% to 1,572.99.

Under the order that will take effect in the coming days, Huawei will need a US government license to buy American technology.

Earlier this year, it was rumored that an Executive Order could ban Huawei's networking equpment in the U.S., and now the law has been put into force.

The Wall Street Journal first reported in May 2018 that the executive order was under review.

USA officials told Reuters the decision would also make it hard if not impossible for Huawei, the largest telecommunications equipment producer in the world, to sell some products because of its reliance on us suppliers. An administration official insisted in a conference call with reporters on Wednesday that the order wasn't aimed specifically at China.

"Having said that, of course, what matters for North Atlantic Treaty Organisation is that these decisions are made in a way that makes sure that they have secure networks", Mr Stoltenberg said. That doesn't include the extra cost of next-generation equipment and upgrades from more expensive Western suppliers.

In January, U.S. prosecutors charged two Huawei units in Washington state saying they conspired to steal T-Mobile US Inc trade secrets, and also charged Huawei and its chief financial officer with bank and wire fraud on allegations that the company violated sanctions against Iran. Meng, who maintains her innocence, is fighting extradition.

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