Huawei says inclusion on US trade blacklist is in ‘no one’s interest’

Chinese telecommunications giant Huawei blasted its inclusion in a U.S. trade blacklist on Thursday, asserting that the move is in “no one’s interest” and will hurt American jobs.

The firm pushed back after the Commerce Department announced on Wednesday night that it had added Huawei to its “Entity List,” essentially barring the company from buying components from American companies without U.S. government approval.

{mosads}”Huawei is against the decision,” the Chinese telecom firm said in a statement. “This decision is in no one’s interest. 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.” 

Huawei added that it will “seek remedies” and a “resolution” immediately.

President Trump also signed a long-awaited executive order Wednesday paving the way to block foreign tech companies — such as Huawei — from doing business in the U.S. if they are deemed a national security threat by the Commerce Department. 

A senior administration official called the executive order “company and country agnostic,” but it comes as the Trump administration has launched a global campaign to keep Huawei from helping U.S. allies develop infrastructure for next-generation wireless technology, known as 5G.

U.S. officials have argued that Huawei poses a national security threat due to its close ties to the ruling Chinese Communist Party and could allow the country to spy on nations where its hardware is present.

Lawmakers on Capitol Hill have applauded the Commerce Department’s move as well as Trump’s executive order. Sen. Marco Rubio (R-Fla.), a member of the Senate Intelligence Committee, said in a statement that “many still have not realized the significance of adding Huawei” to the Commerce Department list.

“U.S. firms will now need a license to export to Huawei & there is a presumption of denial,” Rubio tweeted. “Very soon Huawei will lose access to important components like chips, antennae & phone operating systems.”

Rubio also called out telecom companies such as Samsung, Ericsson and Nokia, writing, “This is also a great opportunity for firms offering a 5G alternative to #Huawei to step up & offer a quality at a competitive price.” 

Huawei’s inclusion on the Entity List means it will be difficult for the company — which is the largest telecom equipment provider in the world — to sell some of its products.

Companies and individuals are placed on the list when the U.S. government determines they could pose a national security risk.

U.S. suppliers will now have to apply for licenses to provide the Chinese company with components for its equipment.

Huawei has pushed back aggressively against claims that it is subject to the whims of the Chinese government. Senior executives with Huawei told The Hill this week that it would “welcome” the U.S. banning use of technology deemed a national security risk. 

The Commerce Department said it has determined there is a “reasonable basis” to conclude that Huawei poses a risk to U.S. networks.

“This action stems from information available to the Department that provides a reasonable basis to conclude that Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interest,” the department said in a statement.

Sen. Roger Wicker (R-Miss.), the chairman of the Senate Commerce Committee, said he has spoken to Commerce Secretary Wilbur Ross to express his “full support for the administration’s decision to include Huawei on the Bureau of Industry and Security Entity List.”

“This is a necessary step to prevent the use of communications equipment that poses a threat to the United States,” Wicker said in a statement. “As chairman of the Senate Commerce Committee, I stand ready to work with the administration and stakeholders to protect our national security and win the race to 5G.” 

The Trump administration engaged in the aggressive moves against Huawei and other Chinese telecom firms after trade negotiations between the U.S. and China deadlocked last week, with both countries vowing to increase tariffs on one another’s goods.