US President Trump has issued an executive order calling for major restrictions on technology suspected of assisting ‘foreign adversaries’.
In the Executive Order on Securing the Information and Communications Technology and Services Supply Chain Trump states that he reckons “foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services.” In response to that perceived threat he is empowering state officials and agencies to take pretty much whatever prohibitive action they deem necessary against any companies they consider to be under the influence of said adversaries.
The order is similar to the ban ZTE faced in 2017 which almost killed the business.
Huawei, and 70 affiliate companies, have been placed on its ‘Entity List’ which could ban the company from purchasing US components.
Although Huawei’s reliance on the US is not as notable as ZTE’s was, the firm’s supply chain could be disrupted by the White House.
Once the order comes into effect, US firms will have to seek official permission from the Secretary of Commerce to work with and/or sell to the companies on the ‘Entity List’.