FILE - In this Thursday, March 7, 2019 file photo, the Texas state flag files outside the Huawei Technologies Ltd. business location in Plano, Texas. President Donald Trump issued an executive order Wednesday, May 15, 2019, apparently aimed at banning equipment from Chinese telecommunications giant Huawei from U.S. networks. It does not name specific countries or companies and gives the Department of Commerce 150 days to come up with regulations. (AP Photo/Tony Gutierrez, File)

US economic sanctions on Huawei could backfire

May 16, 2019 - 2:45 pm

The Trump administration's newly announced plan to restrict exports to Chinese telecommunications giant Huawei for national security reasons doesn't just up the ante in the China trade war.

It could also hurt U.S. suppliers and accelerate Beijing's drive toward greater tech independence.

Telecoms analyst Roger Entner says one-third of Huawei's suppliers are American and, ironically, many of the computer chips and other components it gets from U.S. companies are made in China.

The White House said Wednesday it would require U.S. Commerce Department approval for any Huawei purchases of American technology.

Washington has long insisted that equipment from Chinese suppliers including Huawei poses an espionage threat. But U.S. officials have presented no evidence of Huawei equipment serving as intentional conduits for espionage by Beijing.

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