Trump’s executive order effectively places ban on Huawei telecom gear sales

Amidst escalating trade war between U.S.A and China that has lead to both sides slamming import tariffs on import products from both countries, the United States President Trump on Wednesday finally gave accent to an executive order that empowers the Federal Government to block US companies from buying foreign-made telecommunications equipment deemed a national security risk.

The Federal Government has since been mulling such action and could be seen as the most dangerous moves against China following President Donald Trump order that tariffs on $200 billion worth of Chinese imports would increase, to which China responded Monday by putting levies on $60 billion of U.S. goods.

Trump relies on the International Emergency Economic Powers Act which empowers it to regulate business decisions in response to a clear national threat, and the “national emergency” declaration directs the US Department of Commerce to lead enforcement efforts. Although the order didn’t single out any firm or country but gives the Commerce secretary the Prerogatives to determine countries/firms that are potential National threats, pundits say the order is clearly aimed at  China-based Huawei, which some congressmen have declared National threats in the past. The order has effectively killed Huawei’s dream of participating in US 5G network installation.

The commerce department which is expected to rollout implementation plans within 150days in a separate statement on Wednesday said it had placed the company and its dozens of affiliates on a list of firms deemed a risk to national security. The listing will prevent it from buying American parts and technologies without seeking United States government approval

Huawei in a swift reaction to Trump’s order said the company remains the “unparalleled leader in 5G” suggesting that a ban would raise “serious legal issues.”

“We are ready and willing to engage with the US government and come up with effective measures to ensure product security,” the spokesperson said, adding that restrictions “will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment, and eventually harming the interests of US companies and consumers.”