US President Donald Trump will consider adopting a decree declaring a state of emergency in the country that will prevent American companies from using Chinese telecommunications equipment from Huawei and ZTE.
According to Reuters, sources familiar with the situation stated that the order, which has been pending for more than eight months, may be approved from January. In this case, the Department of Commerce will be forced to prohibit US technology companies from buying equipment from foreign manufacturers of telecommunications systems that pose a threat to the national security of the United States.
The United States believes that the Chinese companies Huawei and ZTE work in the interests of the Asian government and that the equipment they produce can be used to spy on US citizens. Both companies have repeatedly denied these allegations.
Approval by the President of the United States of a decree banning the use of Huawei telecommunications equipment by US companies "will be a serious blow to the fight against China," said Daniel Ives, an economist at a financial company. and investment Wedbush Securities.
The expert stressed that the equipment produced by ZTE and Huawei is much cheaper, especially for rural operators in the Midwest.
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“If we consider rural operators who use switches manufactured by Huawei or ZTE, the transition to new equipment may entail additional costs for some operators that exceed $ 1 billion. The United States, therefore, if this decree really enters into force, It can be a serious problem for operators and, possibly, for consumers, ”Ives told Sputnik.
The economist considered that, although the US national security is a priority and that the idea of the proposed measure is not bad, it is still not clear how the decree will be applied.
"It all looks good on paper, it is important from the point of view of national security, but it is unclear how this will be done in terms of additional costs for operators." The main question is how it will be implemented and if the Government will subsidize the transition to new equipment, ”he said.
Ives believed that this issue should be treated with great delicacy, as this may affect rural operators and, ultimately, the course of negotiations between China and the United States.
“China’s symmetrical reaction to Apple remains the main risk for many US technological measures, which should cause concern, not even the reaction itself, but the domino effect it will cause and its effects on companies like Apple. "Pondero Ives.
“For both China and the US, it’s very important to understand the implications and to take into account the fact that both companies and countries are closely interconnected from a technological point of view,” Ives concluded.
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