Huawei has been having it tough in the last few weeks.
President Donald Trump is expected to sign an executive order next week that would ban Chinese telecommunication equipment from USA wireless networks, Politico reported late Thursday, citing three sources.
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It's believed Huawei and ZTE aren't specifically named in the executive order, but the companies would obviously fall under the category of Chinese telecom equipment providers.
Even though the government wants to keep out Chinese vendors, the USA telecom companies have no clear guidance on how to proceed with a 5G build up minus Huawei.
The company also denied claims it could be compelled to assist Chinese national intelligence work using information gathered from the UK.
"The governments in some countries have labelled Huawei as a security threat, but they have never substantiated these allegations with solid evidence". Allegedly, Huawei's 5G infrastructure equipment can come with backdoors, allowing the Chinese government to spy on communications of any country using Huawei's gear.
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The new legislation was a last-minute addition by the government to a wide-ranging corporate law and would have required telecom operators to seek formal approval for the use of certain kinds of equipment considered to be particularly sensitive for spying or sabotage risks.
Huawei defended itself in a letter to United Kingdom lawmakers made public this week, saying that it would take up to five years to see "tangible results" in upgrading its systems.
Since 2012, the world's largest maker of networking equipment, Huawei, has been barred from selling those products in the US on the explanation of security concerns by the USA government. "Were Huawei ever to engage in malicious behaviour, it would not go unnoticed - and it would certainly destroy our business".
In January, the Department of Justice framed a slew of charges against Huawei and sought the extradition of its chief financial officer for violating sanctions on Iran. And in January, DOJ unsealed a suite of charges against Huawei and its chief financial officer, who faces extradition to the United States for violating sanctions on Iran.
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