U.S lawmakers to present a bill aimed at disabling Huawei’s access to the U.S banks

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Written on Mar 12, 2020

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U.S lawmakers to present a bill aimed at disabling Huawei’s access to the U.S banks.
The bill will pose new challenges for Huawei to deal with its worldwide customers.
Trump Administration wishes to blacklist Huawei from suppliers for the global 5G network.

Following an accusation from the United States that branded Huawei Technologies as a Chinese tool for espionage, the battle between the world’s largest telecommunications equipment manufacturer and the White House has remained the talk of the financial market. In a recent development, sources said that the U.S lawmakers are expected to present a bill on Thursday that could curb Huawei’s access to the United States’ banks for a range of transactions.

The United States has been strategizing to remove the Chinese tech giant from suppliers for the worldwide 5G network. Sponsors of the bill currently include Republican Senator Tom Cotton, Senate Democrat Charles Schumer, and House Republican Mike Gallagher.

Proposed Bill Will Disable Huawei From Dealing With Its Worldwide Customers

Following approval of the bill, the U.S businesses will face added restrictions in participating in transactions with oversees companies that manufacturer 5G telecom equipment and practice industrial espionage.

Provided that the bill is passed and Huawei is blacklisted from accessing U.S banks, the Chinese smartphone manufacturer will face increased challenges in dealing with its worldwide customers as the majority of payments are made in the U.S dollar and are processed via the U.S financial institutions.

Trump Administration had previously pushed the international committee to avoid doing business with Huawei Technologies citing concerns related to national security. President Trump had gone to the extent of threatening to quit sharing intelligence information with its allies if they continued to work with Huawei.

Senate Democrat Charles Schumer’s Comments On The Recent News

In a statement on Thursday, Senate Democrat Charles Schumer said:

“It is time for the Trump administration to take swift and forceful action to block Huawei from accessing the U.S financial system.”

Schumer also reiterated that letting China dominate the worldwide 5G networks raises questions on national security. Huawei chose not to comment on the recent news at this stage.

Gallagher, on the other hand, acknowledged that differences exist among the policymakers and the aforementioned planned bill is likely to stir a strong debate in the White House. The differences, he added, are likely to make it difficult for the U.S to impose such restrictions on Huawei. Gallagher said:

“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.”