The war between the Trump administration and Chinese tech companies is continuing to escalate. According to Reuters, the White House is considering an executive order that would prevent U.S. companies from using telecommunications equipment manufactured by Huawei and ZTE. Following the script that we’ve heard throughout 2018, the Trump administration claims that ZTE and Huawei work on behalf of the Chinese government and could use their technology to spy on American citizens and companies.
While the administrative branch of government does have the power to prevent purchases of equipment, it’s unclear if it has the power to force companies to remove existing equipment. If this executive order comes to fruition, this will likely prove to be a point of contention. Smaller, rural U.S. operators currently use a significant amount of ZTE and Huawei technology. The forced removal of this equipment would come at great cost, and would likely require compensation by the U.S. government for losses.
While the U.S. government has been barred from using ZTE and Huawei equipment, this order would extend the action much further. Consideration of the bill is unsurprising, considering that U.S. carriers are frantically rolling out 5G networks. With the deployment of new technology, the Trump administration wants to prevent Chinese equipment from being used, while also striking another blow in the ongoing trade war.
While a decision hasn’t been finalized, we could see this executive order come to life as early as January.
What are your thoughts on this latest step in the U.S.-China standoff?
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