Blacklist Mess: Huawei's $105 Bn business At Stake After U.S. Broadside

[francoba + 93]

According  to Reuters, the latest U.S. broadside against Huawei that puts the Chinese firm on an exports blacklist threatens to rattle the global tech supply chain, linked closely to the $105 billion business of the world’s top supplier of telecoms network equipment.The Trump administration has said it would add Huawei Technologies and 70 affiliates to its “Entity List” - a move that will likely ban the firm from acquiring U.S. components and technology without government approval, adding another incendiary element to the U.S.-China trade war. The ban is not yet effective. A similar U.S. ban on China’s ZTE Corp had almost crippled business for the smaller Huawei rival early last year before the curb was lifted. Such sanctions on Huawei are, however, likely to have ramifications beyond the company itself, analysts said. It would disrupt Huawei’s business at a minimum and all but put it out of business in an extreme, while its U.S. suppliers would also be hit, they said. Out of $70 billion Huawei spent for component procurement in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel Corp and Micron Technology Inc, and they could see that revenue disappear.

[pinto + 293]

So, blacklist...

[50 shades of black + 254]

1 minute ago, pinto said:

So, blacklist...

More precisely, "national emergency"...

[Pavel + 384]

It's their most important company and this will pull the response as well as from the Chinese government. Total trade world is knocking on the door...

 

 

[Tom Kirkman + 8,860]

3 minutes ago, 50 shades of black said:

More precisely, "national emergency"...

Full text of the Executive Order is in the link:

President Trump Declares National Emergency For Information and Communication Technology

Here we go….  President Trump is laying the groundwork to ban telecommunication companies based on identified risk to national security (ie. Huawei).  Nations who engage in 5-G technology agreements are on notice they may be cut-off from communication partnerships with the U.S.A.

[I think Wall Street just pee’d their pants a little..]

[Executive Order] By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code,

I, DONALD J. TRUMP, President of the United States of America, find that foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services, which store and communicate vast amounts of sensitive information, facilitate the digital economy, and support critical infrastructure and vital emergency services, in order to commit malicious cyber-enabled actions, including economic and industrial espionage against the United States and its people.

...  [ see link above for complete text ]

[rainman + 263]

Pretty clear: spying is not recommended... Fix it then try again...

[damirUSBiH + 327]

Key Q: Will it trigger domino effect of U.S. allies, especially the EU? We have read that the EU is not planning to stop their potential 5G deals with Huawei.

[Tom Kirkman + 8,860]

12 minutes ago, damirUSBiH said:

Key Q: Will it trigger domino effect of U.S. allies, especially the EU? We have read that the EU is not planning to stop their potential 5G deals with Huawei.

A gentle nudge to actually read the Executive Order, rather than a media interpretation of the Executive Order.

It's freely available on the White House dot gov website.

https://www.whitehouse.gov/presidential-actions/executive-order-securing-information-communications-technology-services-supply-chain/

Here is a section:

... Accordingly, it is hereby ordered as follows:

Section 1.  Implementation.  (a)  The following actions are prohibited:  any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction) by any person, or with respect to any property, subject to the jurisdiction of the United States, where the transaction involves any property in which any foreign country or a national thereof has any interest (including through an interest in a contract for the provision of the technology or service), where the transaction was initiated, is pending, or will be completed after the date of this order, and where the Secretary of Commerce (Secretary), in consultation with the Secretary of the Treasury, the Secretary of State, the Secretary of Defense, the Attorney General, the Secretary of Homeland Security, the United States Trade Representative, the Director of National Intelligence, the Administrator of General Services, the Chairman of the Federal Communications Commission, and, as appropriate, the heads of other executive departments and agencies (agencies), has determined that:

(i)   the transaction involves information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; and

(ii)  the transaction:

(A)  poses an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of information and communications technology or services in the United States;

(B)  poses an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the digital economy of the United States; or

(C)  otherwise poses an unacceptable risk to the national security of the United States or the security and safety of United States persons.

[Tom Nolan + 2,443]

You can see some of the Chinese TV and Publication responses (Twitter) on this thread...