One of the biggest fallouts from the tensions between the United States and China has been the former’s accusation against the Chinese telecommunications giant Huawei, that eventually led to its ban in America. The US authorities accused that the telecommunication equipment that is supplied by Huawei is used for spying by the Chinese state and in addition to that, the company was slapped with charges of wire fraud and violations of sanctions regarding Iran.
American companies were banned from using Huawei equipment, and in addition to that, the US authorities also reached out to key allies and asked them to ban the Chinese company in their country as well. Huawei has strenuously denied these charges and has, in fact, sued the US Government in an American court. However, amidst all that, the US President Donald Trump is now all set to sign an executive order that would make the ban completely legal and stop any telecom company in the country from using equipment that is supplied by companies which might pose a threat to the national security of the country. Needless to say, this is clearly about the current issues with Huawei, and this executive order will now make it easier for the US government to run the Chinese tech giant out of the country.
There has not yet been any official intimation about the order, but those who are close to the developments have said that the executive order in question is in the works and could be signed by Trump at some point this week. The basis of the executive order lies in the International Emergency Economic Powers Act, and according to the provisions of that act, the President of the US can regulate businesses in the country that are a threat to national security.
Although the sources close to the developments have stated that the order could be signed this week, they also cautioned that it had been in the works for over a year but got delayed and further delays are not out of the question. The signing of the executive order would definitely ban Huawei from doing business in the US indefinitely, and it would come at a time when the trade tensions between the US and China are at their peak. The US imposed raised tariffs by 25% on $200 billion worth of Chinese goods last Friday and the formal banning of Huawei so close on the heels of the events of last week could further strain relations between the two nations.