President Donald Trump is considering a New Year's executive order to declare a national emergency that would discourage US companies from using telecommunications equipment approved by China's Huawei Technologies and ZTE Corp. Three sources were familiar with the situation, Reuters reported. Reuters.
It would be the latest move by the Trump administration to remove Huawei and ZTE, China's two largest providers of telecommunications network equipment, from the US market. The US claims that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.
The executive's ruling, which has been under consideration for more than eight months, could be adopted early as in January, and would require the Commerce Department to prevent US companies from buying equipment from foreign telecoms manufacturers that have a constitute a significant national security risk, sources in the telecommunications and administration sectors say.
Huawei and ZTE did not respond immediately to a request for comment on the […] Reuters message through the Post .
. Although it is unlikely that Huawei or ZTE called an order, a source said it is expected that officials of the Ministry of Commerce interpret it as an authorization to limit the spread of the equipment manufactured by the two companies. According to the sources, the text for the order was not yet completed.
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Enforcement is in favor of the International Emergency Economic Powers Act, a law that advocates the President's authority to regulate trade in response to a national emergency threatening the United States.
The issue has new urgency as US mobile operators are looking for partners as they prepare to launch the next 5G wireless networks.
The order follows the adoption of a law on defense policy in August that banned the US government from using Huawei and ZTE devices.
Both Huawei and ZTE have made claims in the past that spy on their products. The White House did not respond to comments.
The Wall Street Journal first reported in early May that the decision was being considered, but it was never issued.
Rural Telecom Network Operators In the US, they are one of Huawei's and ZTE's largest customers. They fear that the ruling of executives would also lead to their ripping out of China-made equipment without compensation. Industry officials disagree as to whether the administration could force operators to do that.
While major US mobile operators have broken the link with Huawei in particular, small rural airlines have relied on Huawei and ZTE switches and other network equipment as they do so
The company is so central to small airlines that William Levy, Vice President for Sales of Huawei Tech USA, is on the Board of Directors of the Rural Wireless Association.
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RWA represents airlines with fewer than 100,000 subscribers. It estimates that 25 percent of its members had Huawei or ZTE equipment on their networks, a statement earlier this month told the Federal Communications Commission. The RWA fears that an executive order could force its members to remove ZTE and block Huawei's equipment and future purchases, said Caressa Bennet, RWA General Counsel.
It would cost $ 800 million to $ 1 billion if all RWA members replaced their Huawei and ZTE equipment, Bennet said.
Regardless, in April the FCC approved the first approval of a regulation prohibiting federal funding for telecommunications infrastructure from companies buying equipment used by US security forces as a threat to national security US security is aimed at Huawei and ZTE.
The FCC is also examining whether carriers should be asked to remove equipment from companies classified as a national security risk.
In March, FCC President Ajit Pai said, "Hidden backdoors" Our networks in routers, switches, and virtually any other type of telecommunication equipment can allow enemy governments to inject viruses, conduct denial-of-service attacks, Steal data and much more.
Alabama's Pine Belt Communications estimated that it would cost $ 7 to $ 13 million to replace the Chinese-made equipment, while Sagebrush in Montana said a replacement would cost $ 57 million takes two years
Sagebrush has found that Huawei's products are significantly cheaper, and when looking for deals for its network in 2010, the cost of Ericsson devices was nearly four times that of Huawei.