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Huawei to Seek Remedies in Face of US Ban

Huawei to Seek Remedies in Face of US Ban

In a move that will likely add fire to the growing trade war between the United States and China, President Trump has declared a "national emergency" to protect USA communication networks.

"This decision is in no one's interest", Huawei said in a statement Thursday.

Huawei says it supplies 45 of the world's top 50 telephone companies.

"The bigger concern would be USA allies that used to buy Huawei's components may not continue businesses with Huawei, because of fear of possibly upsetting the United States", said Doh Hyun-woo, an analyst at NH Investment & Securities in Seoul.

Trump, citing national security concerns, signed an executive order that's expected to bar USA imports of equipment made by Huawei and another Chinese company, ZTE Corp.

The President's executive order gives the federal government the power to bar American companies from doing business with foreign suppliers that could pose a threat to national security such as the Chinese firm Huawei. With Taiwan's robust capabilities in the telecom industry and computer component manufacturing, the country should capitalize on the disrupted global supply chain in the wake of the Trump administration's Huawei ban. "If Australia can black ball Huawei as its 5G provider, the United Kingdom can certainly do so the same without undue concern about the consequences", he said. "It will only force the use inferior and expensive alternative equipment, lagging behind other countries. and ultimately harming US companies and consumers".

"I very much hope there is time for the United Kingdom government, and the probability as I write of a new prime minister, to reconsider the Huawei decision", said Richard Dearlove, who was chief of the Secret Intelligence Service from 1996 to 2004.

"The China government doesn't speak for us and we don't speak through the Chinese government". The company has denied the allegations. "And we'll be having discussions about narrowing somewhat the potential of the list in order to minimize the impact on those rural companies".

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At the same time, Beijing's diplomatic relations with Ottawa further soured as China formally arrested two Canadians on suspicion of snatching state secrets in a case seen as retaliation over Canada's arrest of a Huawei executive on a USA extradition request. "Because when all this equipment went in there was no talk of these issues".

"You shouldn't trust any equipment manufacturer, no matter where the company is from, in terms of security", he said. "Operators are not stupid".

Beijing accused President Trump of engaging in industrial sabotage by using state security as "as a pretext for suppressing foreign business". Companies like Samsung, LG, and Oppo have revealed they intend to ...

"Because of the hostility against Huawei, there is a lack of willingness to let the experts talk about the facts", he said. "There are new standards in risk mitigation capabilities that are out there, we can address the risk".

He said he's hopeful those lines of communication will open soon.

5G's importance to emerging industries and its reliance on a complex mixture of software and hardware have countries like the USA anxious that adversaries could easily hack the networks to access user data and divert communication traffic to their own servers. Providers will ultimately pass those costs on to consumers.

He also added there are other economic concerns as Huawei sources some of its components from U.S. companies. As Reuters revealed in a different piece, out of $70 billion that Huawei spent for component procurement a year ago, some $11 billion went to usa firms. "That's American companies in Idaho, Wisconsin, Kentucky, Michigan, Arizona, California and NY".

Updated 2:44 pm PT: Added comments from Huawei executives and Francis Dinha of OpenVPN.