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White House considers banning Huawei and ZTE

2018-12-27 13:54 by
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The Trump administration is considering a ban that would prevent U.S. companies from buying telecommunications equipment made by China's Huawei and ZTE.

It would be the latest step by the Trump administration to cut Huawei Technologies Cos Ltd and ZTE Corp, two of China's biggest network equipment companies, out of the US market. The United States alleges that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.

Huawei and ZTE already face significant difficulties in the US market. Both companies were barred from US government use as part of a defense bill earlier this year, sending a strong message to carriers. ZTE faced catastrophic sanctions from the government over the summer, although the sanctions were ultimately lifted in the face of heavy lobbying.

A formal White House block on the technologies is unlikely to delay the 5G rollout, but it would further concerns that a division in network technology might give rise to an increasingly fragmented internet.

Read more -here-

 

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