US President, Donald Trump has extended the national emergency order that prohibits American companies from buying, selling or using any hardware from Chinese technology company, Huawei, in fear that it will result in ‘cyber-exploitation’ by China for another year.
The order also means that Chinese companies do not have legal access to American technology. Bloomberg reports that this is one way the US is limiting China’s dominance over 5G networks.
Huawei has repeatedly challenged claims that it operates in conjunction with the Chinese government.
US-China Trade Ban: A History
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Back in 2019, Trump claimed that Huawei is a threat to American national security. The US President then went on to sign an executive order allowing his government to any block trade between the US and a foreign organisation deemed as a threat — i.e. Huawei.
A short while later, Trump met with Chinese President, Xi Jinping, at the G20 summit where trade talks between the two countries seemed to be making serious headway. Trump noted that “US companies [will be able to] sell their equipment to Huawei” however he made no effort to disclose when or how a lift on the ban will be implemented.
Law professor at Stanford University, Alan Sykes says, “while the Trump administration has given mixed messages on whether its security concerns about Huawei could be addressed as part of a trade deal, the sanctions against the company provide the U.S. with leverage in the trade talks”.
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