On Wednesday, May 16, Donald Trump signed an order prohibiting U.S. telecommunications companies from using foreign equipment, targeting China and Huawei, whom the U.S. President is accusing of espionage. But the Chinese manufacturer is not the type to be stepped on and retorts without further delay.... The trade war between China and the United States have moved on to another level.
An "exploited vulnerability"
Immediately after that, the American President did not hesitate to ban the marketing of certain telecommunications devices in Uncle Sam's country, starting with smartphones, which he considers dangerous for the country's security.
Although not explicitly named in the decree, the White House is targeting China and Huawei here, thus preventing "the ability of foreign adversaries to create and exploit vulnerabilities in information and communications technology or services". The text allows measures to be taken that are qualified as "national emergencies" against "malicious cyber-enabled actions, including economic and industrial espionage".
Huawei denounces an illegitimate measure
The Chinese group did not let itself be swayed and immediately retorted denouncing "unreasonable restrictions [which] will encroach on Huawei's rights". Adding that preventing the trade of its devices in American territory "will not make the United States safer or stronger" thus reducing the country to "lower quality and more expensive alternatives, leaving the United States lagging behind in the deployment of 5G". Huawei qualifies as "the unrivaled leader of 5G", whose deployment in the United States was totally canceled by this agreement.
Beijing considers this act unfair, distorting competition. For Chinese diplomacy spokesman Geng Shuang, this is too much: "The United States has been abusing its power for some time now to deliberately discredit Chinese companies and drive them back at all costs, which is neither fair nor respectable".
It should be noted that this is one of the most severe measures taken by the Trump government against the Chinese technology sector.
Do these rivalries mark the beginning of a trade war between the two major world economies? What do you think about that?