US President Donald Trump signed an order Wednesday that’s expected to restrict Huawei and fellow Chinese telecommunications company ZTE Corp. from selling their equipment in the U.S. Shortly afterward, the Department of Commerce said it had put Huawei on a blacklist that could forbid it from doing business with American companies.
The Commerce Department’s move to put Huawei on its “Entity List” means U.S. companies will need a special license to sell products to the Chinese company. A similar move against ZTE last year nearly forced the company to shut down before Trump intervened and a deal was reached. Technology or services “designed, developed, manufactured or supplied” by companies subject to the jurisdiction of U.S. rivals, “augments the ability of foreign adversaries to create and exploit vulnerabilities in information and communications technology and services, with potentially catastrophic effects,” the order says.
“We are concerned that China could compel actions by network vendors to act against the interests of U.S. citizens and citizens of other countries around the world,” Strayer said.
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