Congress To Block Huawei From Accessing US Banks

Congress To Block Huawei From Accessing US Banks

Source: Wikipedia, United_States_Capitol_-_west_front.jpg: Architect of the Capitolderivative work: O.J. / Public domain

Legislation unveiling on Capitol Hill today would potentially block Huawei Technologies Ltd from accessing U.S. banks. This move comes as lawmakers from both sides of the aisle attempt to block the Chinese telecom from expanding business operations across the country.

The bill, with sponsors including top Senate Democrat Charles Schumer, Republican Senator Tom Cotton, and House Republican Mike Gallagher, would ban U.S. firms from taking part in “significant” transactions with foreign companies that produce 5G telecommunications technology and engage in industrial espionage.

“It is time for the Trump administration to take swift and forceful action to block Huawei from accessing the U.S. financial system,” Schumer said in a statement, adding that allowing China to dominate global 5G networks through Huawei poses a threat to national security. Citing national security concerns, the Trump administration placed Huawei on a blacklist known as the “entity list” in May, forcing some firms to seek a special license to sell to it.

Representative Gallagher expected differences in opinion on China within the administration to possibly clog up the sanctions, but told Reuters he would stress the matter to President Trump.

“I’m sure there will be a debate in the White House … but my hope is to convince [the President] it is necessary in order to at least fight Huawei to a draw on 5G and preserve the hope that Western firms can compete for 6G and beyond,” he said.

This new legislation follows a previous ban on purchasing Huawei equipment with government funds. On February 27, 2020, the Senate unanimously approved that bill called “The Secure and Trusted Telecommunications Networks Act”, which the House passed in December. That bill also included $1 billion in funding to help smaller rural telecoms “rip and replace” existing equipment from specific manufacturers.

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Source: Equities News

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