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The US Administration Could Use Its „Nuclear” Option Against Huawei

TECH NEWS – Donald Trump’s administration could severely impact Huawei, as they suspect this company is spying for the Chinese Communist Party.

According to Reuters’ insider information, the Trump administration could make the Huawei put on the Specially Designated Nationals (SDN) list by the US Department of the Treasury. It doesn’t sound alarming without us explaining what it means, though – if Huawei ends up as an SDN, it would block American companies and citizens from financial transactions with Huawei, whose assets would also be frozen within the United States. It means the company would effectively be locked out of the American financial system. The idea was brought up by the National Security Council as a backstop option back in May – the trade war between China and America has been going for a long time.

Recently, we discussed how the American telecommunications companies have been blocked from buying equipment from Huawei and ZTE due to national security concerns. Huawei is present in several countries as the company building the 5G networks (including our Hungary…), plus it also maintains several 4G networks. However, Huawei might not be put on the SDN list that easily due to its structure and the subsidiaries: in the first three quarters of the year, Huawei had 86.75B USD revenue, which is a 24% year-on-year increase. 60+ commercial contracts for 5G networks, more than 400 thousand 5G active antenna units – the company isn’t joking around. „The larger an entity is, the harder it is for a U.S. Administration to foresee and prepare for the major effects, foreign and domestic, that placing it on the SDN list may cause,” said Matthew Tuchband, a former Treasury official, quoted by Reuters. The Treasury could block US banks from financial transactions with Huawei, but due to a large number of exemptions, it wouldn’t be that effective.

Annie Fixler, a cyber expert at the Foundation for Defense of Democracies think tank told Reuters that sanctioning the Chinese tech giant „would have broad, widespread implications for Huawei across the globe,” plus its operations would be „severely impacted” in Europe and Asia outside of China. However, Trump hasn’t slammed on that nuclear button yet, so we have to wait for it to happen (IF it happens).

Source: WCCFTech

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