Huawei Banned from Buying Vital US Technology Without Special Approval

Yesterday, we shared a story about how Trump was considering banning US businesses from using Huawei’s telecom equipment. On Wednesday, the US government passed an order which puts this into effect and even bans Huawei from purchasing essential US technology without special approval on national security grounds.

This comes as a double whammy for Huawei because not only does it limit its potential customer base but it also makes it challenging for the company to sell several of its products for which it relies on numerous American suppliers.

The US government insists that Huawei’s technology and equipment can be used by China for spying purposes. In addition to banning the use of Huawei’s telecom equipment by public and private organizations, the US is also trying to convince other countries to ban Huawei’s equipment.

Coming at a time when tensions between US and China are already running high over trade, this news could further strain the relationship between the two world leaders.