The Chinese telecom giants, Huawei and ZTE are facing a possible trade ban as the white house considers a clear trade ban on his telecom equipment according to reports from Reuters.
There is an executive order on the table which would prevent American wireless carriers from acquiring telecom equipment from these Chinese companies. This order has been projected by team of reviewers to serve as a significant blow to both Chinese companies which are primarily the two largest producers of Telecom equipment, and certainly it might significantly halt the proposed release of the 5G network infrastructure.
Weighing in on what this executive order actually implies, we analyzed it would prevent the commerce department from purchasing the Chinese Telecom equipment based on national security, and as the order the order will be majorly on purchase made by the American carriers, it does not hang on the Congress approval before its enforcement. Of recent, both companies have faced major challenges in the US market. Earlier this year, Huawei and ZTE were prohibited from the US government use as part of a defense bill. ZTE was also severely sanctioned by the government over the summer, though the sanctions were later removed.
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As concerns were raised on the effect of this rumored ban on the 5G rollout, Reuters published a post released by the rotating chairman of Huawei (Guo Ping) on the company’s official WeChat page which we concluded as an attempt to place the issue in a simpler term, in the post, he stated, “Barring Huawei from participating in various 5G markets is like an NBA game without all-stars” You possibly can’t play to the highest technical standards.
No further comments has been received from any of the company in question as we await clarifications on this speculation.
Original Source
Labels: Huawei, New Trump Rule, Technology, Telecom, ZTE
