Trump expands U.S. telecom supply chain order aimed at Huawei, ZTE


By MYBRANDBOOK


Trump expands U.S. telecom supply chain order aimed at Huawei, ZTE

U.S. President Donald Trump has extended for another year an executive order signed in May 2019 declaring a national emergency and barring U.S. companies from using telecommunications equipment made by firms posing a national security risk.

 

The order invoked the International Emergency Economic Powers Act, which gives the President the authority to regulate commerce in response to a national emergency that threatens the country. U.S. lawmakers said Trump’s 2019 order was aimed squarely at Chinese companies like Huawei Technologies Co and ZTE Corp.

 

The U.S. Commerce Department is also expected to extend again a license, set to expire on Friday, allowing U.S. companies to keep doing business with Huawei, a person briefed on the matter said.

 

The department has issued a series of extensions of the temporary license and previously extended it until April 1. Huawei, the second-largest maker of smartphones, is also a major telecoms equipment company that provides 5G network technology.

 

Wireless trade association CTIA urged the department to approve a “long-term” license extension, writing that now is not the time to hamper global operators’ ability to maintain the health of the networks.

 

The group argues that ongoing, limited engagement with Huawei to protect the security of equipment and devices in the market benefits American consumers by reducing the risk that they will be subject to device compromise.

 

It also asked Commerce to reinstate and modify its prior authorization for standards development work to allow for exchanges with Huawei in furtherance of global telecommunications standards.

 

Since adding Huawei to an economic blacklist in May 2019, citing national security concerns, the department has allowed it to purchase some U.S.-made goods in a move aimed at minimizing disruption for its customers, many of which operate wireless networks in rural America.



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