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Huawei is backed by China’s military
07-07-2020 08:30
Huawei is backed by China’s military
Huawei is backed by China’s military

Huawei, a Chinese multinational technology company, does not stop to amaze. Several countries accused the tech giant of espionage. The investigation has not been completed yet as new interesting facts about this allegedly commercial company have been revealed.

The American authorities have found out that divisions of Huawei Technologies and Hikvision are owned or controlled by the Chinese military forces. This evidence gives US President Donald Trump every right to tighten his grip on China by means of new sanctions. So far, it is too early to say anything about retaliation, but the two affiliated companies have been placed on the blacklist of the US Department of Defense. As a result, Washington can now block Huawei’s property. The US has already designated Huawei as a threat to national security. Currently, the White House is trying to convince allies to exclude the tech giant from next-generation 5G networks on grounds its equipment could be used by China for spying. In the light of the new evidence, the Trump administration sees the blocking of Huawei’s property as an influence tool for the US government. The Chinese largest telecommunications equipment manufacturer has already experienced the negative effect of the sanctions introduced by the US. Thus, the company’s partners are cutting ties with Huawei at the moment, fearing to be put on the Pentagon's blacklist.

Interestingly, despite the company’s espionage activity, the US did not turn its back on Huawei completely. Earlier, Wilbur Ross, the current United States Secretary of Commerce, has declared that a dialogue with Huawei on setting standards for next-generation 5G networks will be possible. However, only if the United States imposes new requirements in this field.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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