Huawei hits back over Trump's national emergency on telecoms 'threat'

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Chinese firm says ban on tech from ???foreign adversaries??? will harm US consumers

Donald Trump has directed the commerce department to draw up a plan for enforcement of his order.
Donald Trump has directed the commerce department to draw up a plan for enforcement of his order. Photograph: Kevin Dietsch/Pool/EPA

Huawei has hit back at Donald Trump???s administration after it declared a national emergency to ban technology from ???foreign adversaries??? and subjected the Chinese telecommunications company to strict export controls.

An executive order issued by the US president on Wednesday declared a national economic emergency that empowers the government to ban the technology and services of ???foreign adversaries??? deemed to pose ???unacceptable risks??? to national security, including from cyber-espionage and sabotage.

The order did not name specific countries or companies but came after months of US pressure on Huawei. It reflects government concerns that equipment from Chinese suppliers could pose an espionage threat to US internet and telecommunications infrastructure.

In a statement reported by the state-run Global Times, Huawei said: ???If the US restricts Huawei, it will not make the US safer, nor will it make the US stronger. It will only force the US to use inferior and expensive alternative equipment, lagging behind other countries ... and ultimately harming US companies and consumers.???

The company said it was willing to ???communicate with the US to ensure product security???, echoing reassurances given to the UK.

Trump???s executive order invokes the International Emergency Economic Powers Act, which gives the president the authority to regulate commerce in response to a national emergency that threatens the US. The order directs the commerce department, working with other government agencies, to draw up a plan for enforcement within 150 days.

The commerce department said it was adding Huawei and 70 affiliates to its ???entity list???, banning the company from acquiring components and technology from US firms without government approval.

The world???s two largest economies have recently increased tariffs in a battle over what US officials call China???s unfair trade practices. Talks between Washington and Beijing have ground to a halt, causing volatility amid concerns about a global trade war.

Gao Feng, a spokesman for China???s ministry of commerce, said: ???China has emphasised many times that the concept of national security should not be abused, and that it should not be used as a tool for trade protectionism???.

A foreign affairs spokesman described US actions against specific Chinese companies as disgraceful and unjust. ???We urge the US side to stop oppressing Chinese companies under the pretext of security concerns and provide a fair, just and non-discriminatory environment for their normal investment and operation,??? the spokesman said at a press briefing ahead of the executive order.

Trump???s commerce secretary, Wilbur Ross, said the order, which has been under review for more than a year, was aimed at protecting the supply chain from ???foreign adversaries to the nation???s information and communications technology and services supply chain???.

???Under President Trump???s leadership, Americans will be able to trust that our data and infrastructure are secure,??? he said.


Why is Huawei controversial?

Huawei is a Chinese telecoms company founded in 1987. US officials believe it poses a security risk because the Chinese government will make the firm engineer backdoors in its technology, through which information could be accessed by Beijing. Donald Trump has banned US companies from sharing technology with Huawei and has been putting pressure on other nations to follow suit.

The UK has accepted there is some risk in working with Huawei, but security services do not believe it to be unmanageable. It has designated Huawei a ???high-risk vendor???, but the company will be given the opportunity to build non-core elements of Britain???s 5G network. The head of MI5 recently said he was confident the US-UK intelligence-sharing relationship would not be affected if London gave Huawei the nod.

Much of the doubt surrounding Huawei stems from founder Ren Zhengfei???s time as an engineer in the China's People???s Liberation Army from 1974-83. His daughter Meng Wanzhou, a senior Huawei executive, was arrested in Canada in December 2018 over allegations of Iran-sanctions violations.

Huawei insists the Chinese government has never asked it to build a backdoor into its technology, and has offered to sign a ???no spy agreement??? with countries adopting it. The trade rivalry between the US and China has intensified in recent years and the firm believes the White House is simply using it as a weapon in that larger fight.

Kevin Rawlinson

Photograph: Mark Schiefelbein/AP

US officials have previously labelled Huawei a threat and lobbied allies not to use Huawei network equipment in next-generation 5G networks, calling it untrustworthy.

Beijing has pledged to take necessary counter-measures against the US actions, announcing plans this week to increase tariffs on nearly $60bn (??46.7bn) worth of US imports beginning on 1 June, in what the Chinese government said was a retaliatory move after Washington imposed tariffs on $200bn (??155.8bn) of Chinese goods.

Observers say other measures could include added regulatory hurdles for US companies operating in China.

Lu Kang, a spokesman for China???s foreign ministry, said: ???The Chinese government naturally cares about the rights and interests of Chinese businesses and the government will take necessary measures to safeguard their rights. As for foreign businesses in China, as long as their operation is lawful, they should not be concerned.???

Trump is expected to meet China???s president, Xi Jinping, in Japan next month.

Huawei has strongly denied US allegations that its equipment could be used by the Chinese state to spy.

Ren Zhengfei, the company???s founder and chief executive, claimed in February that Huawei would reject any efforts to gather intelligence through its products even if the Chinese government required it to do so.

???We never participate in espionage and we do not allow any of our employees to do any act like that. And we absolutely never install backdoors,??? he told CBS News.

In August, Trump signed a bill that barred the US government from using equipment from Huawei and another Chinese provider, ZTE Corp.

The export restriction is ???a grave escalation with China that, at minimum, plunges the prospect of continued trade negotiations into doubt,??? Eurasia Group analysts said in a report. ???Unless handled carefully, this situation is likely to place US and Chinese companies at new risk.???

It appears the law invoked in Wednesday???s executive order has never before been declared in a way that affects an entire commercial sector.

Huawei said in a statement on Thursday that the decision was ???in no one???s interest??? and would ???affect tens of thousands of American jobs, and disrupt the current collaboration and mutual trust that exist on the global supply chain???.