Huawei Technologies is staring down the barrel after President Trump dramatically racketed up the pressure on the Chinese networking giant.
Yesterday Huawei had pledged to sign “no-spy” deals with any foreign government, but this did not stop President Trump, who as expected, signed an Executive Order that could have a significant impact on the firm.
The order means that Huawei will be excluded from all US 5G networks on national security grounds.
This hit on Huawei’s supply chain will see firms such as Qualcomm and Broadcom unable to supply the Chinese company with their chips.
Fellow Chinese company ZTE for example was last year brought to its knees by a similar move by the US.
The US had imposed a component ban on ZTE in April 2018 in response to ZTE’s alleged failure to discipline executives who had colluded to evade US sanctions on Iran and North Korea.