On May 16, the President of the United States invoked the International Emergency State Economic Powers Act to sign an executive order requiring US companies to enter a state of emergency. The United States officially opened the prelude to sanctions against Huawei. The action put Huawei on the “ list of entities ” to prohibit Huawei from using US products and technologies. The sanctions affected US chip component, software and part of Huawei’s business was greatly affected, especially Google Android end consumer business, mobile phone use, PC using Intel processors and Microsoft Windows.
However, in a dramatic move, US president, Donald Trump, announced at a press conference that he would allow US companies to continue selling products to Huawei. Trump said that Huawei’s products are very complex products produced in Silicon Valley in the United States. These American companies are great and will drive employment, so American companies are allowed to continue selling products to Huawei. In other words, Huawei’s ban has been lifted.
On this issue, the New Zealand Communications Security Agency say that it now has to re-examine the issue. The report said, “if Americans are no longer concerned ( Huawei security issues), should New Zealand care about this issue?” Recall that New Zealand had initially banned Huawei from participating in its 5G program. It is now clear that New Zealand on its own had no issue whatsoever with Huawei but was probably just acting because the United Stated wanted it.
Although the United States has not legally lifted sanctions against Huawei, it has already confirmed the relaxation of sanctions. This issue is good news for Huawei and Huawei’s US suppliers, but it is a bit unexpected for US allies. – The United States convinced some of its allied countries to ban Huawei citing national security. In all honesty, any nation that prohibits Huawei from participating in its 5G program will probably spend millions of dollars more. This is because Huawei is by far the most sophisticated and cheapest company in the 5G market.