Donald Trump declares national emergency over cyber threats against US

Logo of Huawei is seen at Viva Tech fair in Paris

Trump has signed an executive order to ban foreign telecoms equipment

Previous reports also highlighted that Huawei's lead in 5G might be one reason why the USA government has been moving against the tech company, and the whole situation gets even more complicated when you factor in the escalating trade war with China.

On Wednesday, President Trump used an executive order to declare a national economic emergency that empowers the USA government to ban the technology and services of any "foreign adversaries" that it says pose "unacceptable risks" to national security.

President Donald Trump's new order effectively blacklisting Huawei, the Chinese telecommunications networking equipment maker and smartphone giant, from the US market will not hurt America in the race to build out next-generation 5G wireless technology, a well-known CEO and a top telecom investment banker who did not want to be identified told CNBC on Friday.

The Commerce Department first gave notice on Wednesday that it was adding Huawei to its trade blacklist.

"China will take all the necessary measures to resolutely safeguard the legitimate rights of Chinese firms."

While many countries agree that Huawei, and China, pose a spying threat to the Western telecommunications infrastructure, they are unwilling to take a firm stance against China due to the economic impact it would entail.

The apparent one-two punch is the administration's latest in a series of measures against China's largest telecom equipment company, as the two countries engage in tense trade and technology fights.

A member of Huawei's reception staff walks in the foyer of a building at the company's Bantian campus in April in Shenzhen, China.

Out of $70 billion Huawei spent for component procurement in 2018, some $11 billion went to US firms including Qualcomm, Intel Corp and Micron Technology Inc, and they could see that revenue disappear. They are warning other countries that the company is a national security risk.

The order takes effect immediately, a Commerce Department spokesman said, although it will not be formally published in the Federal Register until Tuesday. Hopes for a deal to end their trade war have been thrown into doubt after the world's two biggest economies raised tariffs on each other's goods in the past week.

China retaliated with higher tariffs on a revised list of $60 billion worth of United States products.

But Dearlove said since China conducts aggressive intelligence gathering operations on a global scale, and since no part of the Chinese state is ultimately able to operate outside of the control of its Communist Party, "Therefore, we must conclude the engagement of Huawei presents a potential security risk to the United Kingdom".

Huawei said that it's "ready and willing to engage with the U.S. government and come up with effective measures to ensure product security".

The crackdown on Huawei came as US Treasury Secretary Steven Mnuchin said he would visit China soon for more trade talks.

Canada has also been dragged into the spat after arresting Huawei's chief financial officer Meng Wanzhou in December on a U.S. extradition warrant related to Iran sanctions violations.

But Huawei believes that the USA measures will not necessarily make the United States stronger or safer, it will just limit its options leading it to seek more expensive alternatives to build its 5G network, which will in turn make it less competitive harming the interests of U.S. companies and consumers. "It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs and disrupt the current collaboration and mutual trust that exist on the global supply chain".

Both Huawei and the Chinese government condemned the Trump administration moves. In addition, Huawei's founder, Ren Zhengfei, responded to the inclusion of the company in the "list of entities".

As negotiations towards resolving the U.S.

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