The President of the United States of America in Donald Trump has taken a stunning decision which sees the Huawei ban placed on the company being extended by yet another year. Indeed this extension means that for the second year running, the Chinese manufacturer will be disabled from the use of any telecommunications equipment made by groups that could pose a national security risk through next year.
The report proceeded on to indicate that Trump invoked the International Emergency Powers Act so as to extent the ban. The ban initially was imposed last year and the president of the country took upon himself to declare a national emergency – this allowing him to invoke the very first ban in the first place.
Indeed in the very first and initial order, Trump cited a risk of sabotage to communications, General national security risks, the risk of infrastructure as well as risks that see extension to the digital economy. Considering the fact that there wasn’t any sort of additional wording extended to the latest ban, I think it’s a safe bet to assume that the stipulations of the ban will remain unchanged as we take it forward to 2021.
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One would have to imagine then that a large number of companies and not only Huawei will be significantly affected by the fresh ban. We’ve seen to it that Huawei has been responding to the ban via releasing updates of old phones rather than actually pushing new device through into the US market – however, it’s fair to say that the company can’t sustain such a strategy for a very long time.
When the original telecommunications ban was subject to being announced, Huawei, in a statement, said : “Restricting Huawei from doing business in the US will not make the US more secure or stronger; instead, this will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment.”
