US economic sanctions on Huawei could backfire

The Trump administration’s newly announced plan to restrict exports to Chinese telecommunications giant Huawei for national security reasons doesn’t just up the ante in the China trade war.

It could also hurt U.S. suppliers and accelerate Beijing’s drive toward greater tech independence.

Telecoms analyst Roger Entner says one-third of Huawei’s suppliers are American and, ironically, many of the computer chips and other components it gets from U.S. companies are made in China.

The White House said Wednesday it would require U.S. Commerce Department approval for any Huawei purchases of American technology.

Washington has long insisted that equipment from Chinese suppliers including Huawei poses an espionage threat. But U.S. officials have presented no evidence of Huawei equipment serving as intentional conduits for espionage by Beijing.

Frank Bajak, The Associated Press