The US is preparing to crackdown on both companies' hardware in a big way, according to Reuters, which claims that the Trump administration may use a national emergency declaration to issue an executive order banning US companies from purchasing ZTE and Huawei telecommunications equipment. The executive order doesn't name Huawei and ZTE, instead, it directs Commerce Department to block USA companies from buying equipment from foreign telecommunication makers that pose major national security risks.
The US is said to be mulling over an executive order that could bar American firms from using equipment from Chinese telecommunications giants Huawei and ZTE because they pose security risks.
The report cites three sources close to the administration who have confirmed the existence of the order.
ZTE has refused to comment on the report, while RT is still waiting for a response from Huawei.
While a decision hasn't been finalized, we could see this executive order come to life as early as January. The two companies have been accused in the past of violating global sanctions resulting in conflict with the U.S. There is also a general belief by many in government that the two companies may be embedding technology in their equipment that could be used to spy on the U.S. or even shut down wireless networks remotely.
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"This, in reality, is undoubtedly shutting oneself off, rather than being the door to openness, progress and fairness".
Huawei and ZTE are both Chinese companies have that received ongoing scrutiny from the U.S. government over perceived security threats.
"Some countries have, without any evidence, and making use of national security, tacitly assumed crimes to politicize, and even obstruct and restrict, normal technology exchange activities", she added. If the reported executive order comes and states that this equipment must be replaced, it's estimated that the cost of such work would be $800 million to $1 billion for all RWA members to replace their Huawei and ZTE equipment. A year ago, some U.S. carriers were expected to launch a new Huawei smartphone, but that never happened, on advice from the U.S. government. But the company has still managed to court business with smaller providers that have said they have no other good options.