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Trump Could Sign Executive Order that Bans Huawei and ZTE Network Equipment

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It looks like neither Huawei nor ZTE are in the clear, when it comes to using their network equipment in the U.S. 

Just recently, it was revealed that U.S. President Donald Trump could be signing an executive order declaring a national emergency. Once the EO is signed, U.S. companies could be blocked from using networking equipment manufactured from either Chinese company. 

The report comes from Reuters, who reported that the EO has been under consideration for over eight months. If President Trump signs it, it could be issued within the month. 

The reason behind the order is that officials from the U.S. have expressed concerns over the use of these networking equipment to spy on the U.S. Since both Huawei and ZTE work for the Chinese government, there is a possibility that the equipment could be used for their own benefit. Both Huawei and ZTE have since commented on the report and denied the possibility of their products being used for spying. 

Back in 2018, there was already a ban on the use of Huawei and ZTE products among the government and its contractors. The new executive order could be the government's way of minimizing the presence of these Chinese manufacturers in the country.

If the EO is signed, unfortunately, it could have a big impact on rural U.S. carriers that use the networking equipment of Huawei and ZTE. Since these are less expensive than the other options, a number of smaller carriers continue to use these brands. 

About 25 percent of the members of the Rural Wireless Associate (RWA) have attested to using networking equipment manufactured by these brands. If these members are forced to replace their existing equipment, it could cost as much as $1 billion. And for small rural carriers, this would definitely be something that's way out of their budget. 


Source: PhoneDog 

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2 comments:

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  1. do not care about the networking equipment. just don't touch my huawei phones.

    ReplyDelete
    Replies
    1. You mean your future imported Huawei phone?

      Delete
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