Huawei: U.S. Ban Will Hurt American Jobs

Trump has signed an executive order to ban foreign telecoms equipment

USDCNH Nears Decade High, Huawei Ban Worsens US-China Relations

The announcement that Huawei would be put on the Commerce Department's entity list took tech companies by surprise and many are now scrambling to figure out what that will mean for their operations.They argue a move to cut off Huawei from American technology sales would further decouple USA firms from the global technology supply chain and end an important revenue stream.

A Huawei logo is seen at an exhibition during the World Intelligence Congress in Tianjin, China May 16, 2019.

Huawei would be the largest business ever subjected to the controls, a law enforcement measure that requires it to obtain USA government approval on purchases of United States technology, said Kevin Wolf, a former U.S. assistant secretary of commerce for export administration.

China took up cudgels on Thursday against Washington after it issued an executive order restricting Huawei Technologies and 70 affiliated companies from doing business in the US.

At the same time, Beijing formally arrested two Canadians who have been detained for months on national security grounds, a move widely seen as retaliation for Ottawa's arrest of a Huawei executive previous year at Washington's behest.

The U.S. crackdown, announced on Wednesday, was the latest shot fired in a U.S.

Gao, the Chinese commerce ministry spokesman, said that to reach a trade deal all tariffs must be scrapped, demands for Chinese purchases of USA goods must be realistic and the pact must be "balanced".

The action comes as the world's two largest economies ratchet up tariffs in a battle over what US officials call China's unfair trade practices. It will drive Beijing to ramp up support for companies in the Chinese tech sector and to improve the country's semiconductor production capabilities through initiatives like the Made in China 2025 plan, which the United States wants China to stop as a part of its trade war.

However, Huawei say they are an independent company with no links to the Chinese government. China also slapped formal charges of spying on two Canadian citizens who have been under detention for several weeks.

Huawei has been "involved in activities contrary to the national security or foreign policy interests of the United States", the order says.

She and the company deny the charges.

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The Commerce Department first gave notice on Wednesday that it was adding Huawei to the list.

The Trump administration on Wednesday effectively blocked Huawei products from being used in USA networks.

Obtaining such approval will not be easy. Although it has market dominance in much of Europe, the telecommunications giant still wishes to eat away at Apple's market share.

As negotiations toward resolving the U.S.

But leading analysts downgraded their assessments for several US microchip companies on Thursday.

Trump, who has embraced protectionism as part of an "America First" agenda, has railed against what many US and European officials and companies describe as China's unfair trade practices, including forced technology transfers and intellectual property theft. Qualcomm fell 4 per cent, Broadcom Inc. was down 2.3 per cent and Xilinx Inc. This list is reportedly for companies that the US government deems to be undermining USA interests.

The spat over Huawei adds to the uncertainty over efforts to revive a deal that would end a bruising US-China trade war after the two sides exchanged fire with tariff hikes in recent days.

"There's other things they can do, and M&A would certainly be one thing", said Stacy Rasgon, an analyst with Bernstein.

He said that to place China in a potentially advantageous exploitative position in the UK's future telecommunications systems "is a risk, however remote it may seem at the moment, we simply do not need to take".

"Restricting Huawei from doing business in the USA will not make the US more secure or stronger", a Huawei statement notes.

Huawei said: 'In every country where we do business, we abide by the laws and regulations and protect the privacy of our customers'.

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