How Hauwei Might Handle the Latest US Sanctions

Author Name: Klint Finley

Publishing Date: June 21,2019

Publishing Platform: Wired

An article that I found extremely interesting was of a recent issue faced by a business in the United States named Huawei . Its a Chinese telecom hardware company. Huawei is China's biggest phone maker and has recently been embroiled with the U.S. government concerning security threats. Huawei did business with many American corporations in the USA and provided cellular network gear to many companies in the USA. Yet, there was a security concern that China is using Huawei's network for surveillance purposes.

That issue was quickly resolved after the U.S. government applied law and Constitution and banned all U.S. companies from doing business with Huawei keeping in mind the issue of national security. Using the provisions of the U.S. constitution, the government added Huawei to a list of companies that are considered a threat to U.S. national security. So Huawei is unable freely acquire U.S. technology and will have to seek U.S. government's permission to do the same. The provisions of the Constitution with regards to national security have been used to put export restrictions on Huawei as well.

The US has been very concerned about some of these Chinese companies simply being trojan horses for China.

Another interesting area is mergers re international law, thanks for this post. Mergers are not as controversial as they used to be. My guess is that because so many companies compete globally now, we are not as concerned when they grow large!

Is that a good or bad development?