The Wall Street Journal reported on Thursday that the US government is approaching their counterparts in friendly countries to persuade them to stop using networking products from the Chinese company, Huawei Technologies. According to information gathered from undisclosed governmental sources, officials in the Trump administration have sought out and briefed governments and internet service providers in countries like Germany, Italy and Japan about the security risks posed by using equipment from the Chinese company. The concern is not just about cyber security but about national security as well, as Huawei is suspected to be close to the Chinese government, and possibilities of espionage cannot be ruled out. The sources also said that the US is currently thinking about offering financial aid to countries that decide to shun Huawei.
US officials had warned citizens a few months back about buying phones and wireless network equipment from Huawei. Also, the US has taken steps to prevent the company from supplying products to the government departments and contractors. Australia followed suit by avoiding Huawei products for the upcoming 5G networks. One of the major concerns of the US officials is the use of technology in countries with a strong American military presence like Germany, Italy and Japan. The US is expected to step up these measures, as all over the world users are getting ready for the oncoming 5G era with Huawei as one of the biggest providers of the technology.
Huawei has denied the espionage charges as they started to come up earlier this year, saying that it doesn’t work for any government. Whatever that is, the pressure coming on the company is tremendous as it now faces the possibility of losing a big chunk of its potential market. The ZTE Corporation, another Chinese firm that manufactures telecommunication equipment and software, had its Hong Kong shares fall by 5.6 percent. Like Huawei, ZTE also faces a ban situation in the US. The ZTE slide affected other major Chinese telecom technology providers with shares dropping about 3 percent.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.