It looks like things are even getting tougher for Huawei as US president Joe Biden signed a new executive order that bans US entities to invest in 59 total Chinese companies including Huawei starting August 2. These companies have suspected ties to the Chinese Communist Party.
Telecom company China Mobile, video surveillance company Hangzhou Hikvision Digital Technology Co Ltd (Hikvision), and chipmaker Semiconductor Manufacturing International Corp (SMIC) are among those companies that join Huawei in the list.
“In addition, I find that the use of Chinese surveillance technology outside the PRC and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats, which have their source in whole or substantial part outside the United States, to the national security, foreign policy, and economy of the United States, and I hereby expand the scope of the national emergency declared in Executive Order 13959 to address those threats.”
US President, Joe Biden
With this order, President Biden is reinforcing the hard stance that former President Trump during his administration held against China’s intelligence and security research firms. It was at this time that the US government first made a move to blacklist companies said to be connected to the Chinese Communist Party, including Huawei.
The previous ban to Huawei was a trade ban and it disallowed companies like Google to work with the Chinese company.
A senior US official confirmed that it is likely that more Chinese companies will be added to the list. However, it is uncertain if other smartphone makers from China or messaging platforms WeChat and social media like TikTok will be added to the list.