This archive report was first published on 10 September 2019.
Published on September 10, 2019, the US-China trade war has been ongoing for months, with both sides imposing tariffs on each other's goods. At the center of this war is Huawei, a Chinese tech giant accused of violating US sanctions and stealing trade secrets.
While Meng Wanzhou, Huawei's CFO, awaits extradition to the US in a Vancouver mansion, Beijing has detained two Canadians in China, in solitary accommodations and under brutal conditions, in an attempt to force an exchange. Canada has stood with the US and refused.
In January, American prosecutors indicted Meng and Huawei on 23 counts, ranging from wire fraud to conspiracy to defraud the US to stealing trade secrets. The Department of Commerce then added Huawei and 70 of its affiliates to its 'Entity List', or blacklist, in May, which means no American company can sell them hardware, chips, software, or services without special permission.
The export blacklist takes full effect on November 19, which will mean that Google, Microsoft, and Intel can no longer do business with China's biggest phone equipment company. Foreign companies that depend on American technology are also being pressured by the Trump administration not to deploy Huawei products.
American officials believe that Huawei can install 'back doors' in its equipment that Chinese intelligence can exploit, although no evidence has been publicly reported. This is why the Trump team is facing challenges not only from Huawei but also from some of its biggest American suppliers, who stand to lose a huge chunk of business.
Microsoft President Brad Smith told Bloomberg Businessweek that when his company pressed regulators to explain their Huawei ban, they were met with vague responses. Smith said, 'oftentimes, what we get in response is, 'Well, if you knew what we knew, you would agree with us.' And our answer is, 'Great, show us what you know, so we can decide for ourselves. That's the way this country works.'
