August 18, 2019

US adds Chinese telecom Huawei to trade blacklist

The addition of Huawei to the “Entity List” maintained by Commerce will make it more difficult for the Chinese telecom giant to buy parts and components from US companies and sell products in the US.

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Secretary Wilbur Ross announced the move on Wednesday, shortly after Trump made public an executive order declaring a national emergency over risks allegedly posed to US security buy information and communications technology owned, designed or operated by “foreign adversaries.”

Justifying the decision, Ross said the Commerce Department had reasonable basis to believe Huawei was “engaged in activities that are contrary to US national security.”

The blacklisting will mean that US suppliers will need a special license to trade with Huawei and its affiliates.

While it did not specifically name Huawei or China, Trump’s emergency order is widely understood to have been written with them in mind, as the US seeks to erode Beijing’s lead in 5G telecommunications technology. Trump has said he “cannot allow any other country” to out-compete the US in the field of 5G technology, calling it a race “America must win.”

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