President Donald Trump on Monday, Aug. 19, said that his administration will not do business with Chinese telecom giant Huawei, due to a national security threat.
In May, the Commerce Department put Huawei on a blacklist, which effectively bars it from buying the U.S. technology it needs.
Before Air Force One’s departure from New Jersey, one reporter asked President Trump, “On Huawei—is the administration going to allow U.S. businesses to continue selling to Huawei? Is there going to be an extension of the license tomorrow?”
The president asserted the opposite.
“No. That was reported. And, actually, it’s the opposite. Huawei is a company we may not do business with at all. We’re actually open not to doing business with them,” Trump said.
“At this moment, I don’t want to do business at all, because it is a national security threat. And I really believe that the media has covered it a little bit differently than that,” he added. “We’ll be making a decision over that in the not-too-distant future.”
The founder of Chinese tech giant Huawei said on Tuesday that he expects no relief from U.S. export curbs due to the political climate in Washington.
Ren Zhengfei said Huawei expects U.S. curbs on most technology sales to go ahead despite Monday’s announcement of a second 90-day delay.
Washington has placed Huawei on an “entity list” of foreign companies that require official permission to buy American technology.
Huawei’s chief financial officer, who is also Ren’s daughter, is fighting extradition from Canada to face U.S. charges related to possible violations of trade curbs on Iran. Beijing arrested two Canadians in a possible attempt to force her release.
According to a study published on July 5, by the Henry Jackson Society, Huawei’s employees acknowledged working with cyberagencies backed by the Chinese army.
The research is based on an analysis of the résumés of thousands of employees that were leaked online, prompting further questions about the telecommunications company’s links to the Chinese regime.
The report notes that some Huawei employees have worked as agents within China’s State Security Ministry, on projects with the People’s Liberation Army (PLA), and in a military unit linked to a cyberattack on U.S. companies.
More than 100 of Huawei’s staff had connections with Chinese intelligence agencies and their “background indicated national security experience,” Christopher Balding said in the study.
Includes reporting from the Associated Press