U.S. lawmakers propose law that would ban Huawei, ZTE and other Chinese firms from buying U.S. parts

U.S. lawmakers propose law that would ban Huawei, ZTE and other Chinese firms from buying U.S. parts
Chinese manufacturers Huawei and ZTE, both already branded as national security threats by the U.S. government, could be banned from purchasing parts made in the U.S. under bills introduced yesterday by a bipartisan group of lawmakers. According to Reuters, under the proposed legislation, chips and other components made in the states would be off limits to Huawei, ZTE and other Chinese telecom firms that fail to comply with U.S. sanctions and export control laws.

The bills were introduced on Wednesday, the same day reports surfaced that federal prosecutors planned on conducting a criminal probe against Huawei. The company allegedly stole technology secrets from U.S. carrier T-Mobile related to a phone testing robot called "Mr. Tappy." T-Mobile won a civil case against Huawei involving the theft, and was awarded $4.8 million.

The bipartisan authors of the bills include Senator Tom Cotton and Representative Mike Gallagher, both Republicans, and Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats. The news that these lawmakers have proposed this legislation set off Chinese government officials. Foreign Ministry spokeswoman Hua Chunying called the U.S. legislation "hysteria," and suggested that U.S. lawmakers block the bills.


The U.S. government fears that Huawei and ZTE use back doors on their handsets and networking equipment to send confidential information to the Chinese government, an accusation denied earlier this week by Huawei founder Ren Zhengfei. Ren's daughter, Meng Wanzhou, is the CFO of Huawei and is presently detained in Canada. She faces extradition to the states after being accused by U.S. authorities of committing bank fraud in order to cover up business conducted between Huawei, Iran and Syria. The latter two countries are under U.S. sanctions. The relationship between the two countries is further strained by the U.S.-China trade war.

Last year, ZTE got a taste of what business would be like if it isn't allowed to buy parts from the U.S. Because the company failed to comply with penalties imposed on it by the U.S. Commerce Department in relation to previous sales to Iran and North Korea, ZTE was placed under an export ban that prevented it from sourcing parts from the U.S. ZTE had to shut down some of its business operations, and eventually reached a settlement that allowed the ban to be lifted. The terms of that deal called for ZTE to pay a $1 billion fine, put $400 million in escrow to cover any future punishments, change its board of directors, and hire new executives.

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35 Comments

1. shaineql

Posts: 515; Member since: Apr 28, 2014

Go ahead , I mean too much conspiracies around them anyway, true or not... A little slap in the face should do it

10. IT-Engineer

Posts: 452; Member since: Feb 26, 2015

China should ban all American cars, Tobaco and computers. Lets see who screams foul play then.

16. Chumley

Posts: 37; Member since: Jan 22, 2018

Your ignorance is astonishing. By American cars I guess you mean the ones that are charged a minimum of 25% import tariff to be sold there? Or the ones built there by the Chinese where the US companies pay to build a plant, can't over more than 49% of it, and give up all the IP and processes in the manufacturing? I doubt all the "American" (wrong again!) computer companies like ASUS, Acer, Lenovo, Sony, Toshiba are too concerned....

31. IT-Engineer

Posts: 452; Member since: Feb 26, 2015

eehhmm. Sony & Lenovo are not American, i also believe Toshiba is Japanese.

19. slashas

Posts: 118; Member since: Jul 17, 2017

Chinese loves German cars ;)

30. worldpeace

Posts: 3074; Member since: Apr 15, 2016

Chinese love Chinese cars :P

23. TheOracle1

Posts: 1811; Member since: May 04, 2015

As long as it doesn't include Google software for their international models it's a waste of time. Buy Exynos socs from Samsung, use Mali GPU's (Japanese from Sofbank), Mediatek modems (they're actually very good) etc. This would hurt Qualcomm most in my opinion as few US companies make phone components.

29. mootu

Posts: 1319; Member since: Mar 16, 2017

It would hurt Intel as well, Huawei network equipment runs mostly on Intel cpu's. If this does go through i can see the Chinese government reponding in kind which won't be good for anyone.

2. Papa_Ji

Posts: 760; Member since: Jun 27, 2016

The world should get together and ban all those spying arm of US government....Google, Apple, Microsoft, Facebook, Amazon... I am with you ZTE, I am with you Huawei,I am with you China ,I am with everyone who is against U$A. # BIGGEST TERRORIST COUNTRY should receive death penalty.

9. drunkenjay

Posts: 1615; Member since: Feb 11, 2013

Damn, you are trying real hard to get your social credit back up in China XD

18. lyndon420

Posts: 6365; Member since: Jul 11, 2012

He could be stepping on some big nerves as well...think NSA.

22. dimas

Posts: 3233; Member since: Jul 22, 2014

@drunkenjay He just forgot his medication. We support your quick mental recovery Papa_Ji.

21. dimas

Posts: 3233; Member since: Jul 22, 2014

"I am with everyone who is against U$A." Syria, Qatar and Iran are against U.S. and freedom to choose your religion and opinion, are you still with them? Goodluck if you stay in china and try to visit google, phonearena, and other american websites again.

24. TheOracle1

Posts: 1811; Member since: May 04, 2015

Qatar is against the US? Do you get your news from Fox?

3. Donbenie

Posts: 238; Member since: Aug 04, 2013

All you need is to give a dog a bad name,shout it from the rooftops then go ahead and hang him..

4. chenski

Posts: 730; Member since: Mar 22, 2015

Lol even with the ban Huawei can still find a way to get their hands on the parts they want

20. slashas

Posts: 118; Member since: Jul 17, 2017

You mean steal technology? :)

25. vikingsfootball09

Posts: 83; Member since: Oct 02, 2013

all the major countries in the world steal technologies...hello???

35. Eclipse

Posts: 9; Member since: Jan 11, 2019

Please don't said steal anymore.Even mathematics and medicine science first "discovered" by Asian and "develop" by western,is that part of steal also?:)

5. TechNeck

Posts: 621; Member since: Aug 29, 2014

All of this is bad business and further alienating the US. They really need to stop this foolishness because this is all happening out of fear. Huawei and ZTE been in the US for years and no one said anything until the past 2 years.

26. vikingsfootball09

Posts: 83; Member since: Oct 02, 2013

leave it to our current president to create all these current dramas going on in the world and our country that is the doing of our president

6. ZerosAndOnes

Posts: 82; Member since: Oct 12, 2018

In less than 2 years democrat wins the elections. Everything goes back to normal. Mark my words.

14. Subie

Posts: 2255; Member since: Aug 01, 2015

From 2013 under Obama(a democrat): https://www.reuters.com/article/us-huawei-security/former-cia-boss-says-aware-of-evidence-huawei-spying-for-china-idUSBRE96I06I20130719 Here's and excerpt: "In October 2012, the U.S. House of Representatives’ Intelligence Committee urged American firms to stop doing business with Huawei and ZTE Corp., warning that China could use equipment made by the companies to spy on certain communications and threaten vital systems through computerized links" I'm not in agreement with Trump, but this business with Huawei goes farther back then his administration.

7. L0n3n1nja

Posts: 1503; Member since: Jul 12, 2016

How long until China declares Apple a security risk? I mean the US is notorious for spying and implementing back doors. China has the ability to hault iPhone production completely.

8. Eclipse

Posts: 9; Member since: Jan 11, 2019

"The terms of that deal called for ZTE to pay a $1 billion fine". In the end everything back again to money. I believe if Huawei "pay" some money then US senator Will said "everything is clear now, don't do that again" lol

11. D34ever

Posts: 200; Member since: Jul 14, 2018

Why not just ban them from selling anything in the U.S.?? Do it right the 1st time and get it over with already!

12. Ghost04

Posts: 496; Member since: May 03, 2014

American Parts !!!!!! All American products are made in China. And most of Smartphone hardware are not American products. They are mostly Japanese, Korean and Chinese. Even iphones hardly have any American Parts in them.

13. SyCo87

Posts: 275; Member since: Sep 19, 2013

No one tell the government about Honor or OnePlus, we need some good values phones.

15. almostdone

Posts: 416; Member since: Sep 25, 2012

It's very hypocritical for countries calling others spies when they're doing it themselves. We all know Google, Apple, Facebook, Amazon, Twitter, governments etc are spying on us I don't doubt China does a large share of spying but so does most of the western world to gain unfair advantages but the most dangerous spying is when these huge corporations have nearly every soul on earth.

17. Chumley

Posts: 37; Member since: Jan 22, 2018

You are almost certainly correct. The difference is in the US everyone has the freedom to call them out on it. Apple, for all its shortcomings, is by far the closest thing to an advocate for privacy any of these companies are. They routinely publish stats on the number of requests made by law enforcement and govm'ts. The founder of Huawei actually had the nerve to say that since founded in 1987, in one of the largest, repressive communist regimes, that they had never been asked by the gov't anything inappropriate. Ya, right! They (Chinese gvmt) are bad actors, plain and simple, Ask ANYONE involved in international business or who has IP at risk. .

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