Devices from both it and fellow Chinese firm ZTE are banned from American agencies and contractors, but a new report claims the Trump administration doesn’t want to stop there–it’s trying to persuade telecom companies in allied countries to avoid using the firm’s equipment. The move would further pile pressure on the world’s biggest telecom gear maker, which is under scrutiny from western intelligence agencies for its perceived ties to China’s government and the possibility its equipment could be used for espionage.US officials have reached out to their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use about what they see as cybersecurity risks, according to the WSJ report, which cited unnamed people familiar with the situation.The US has already largely barred Huawei from supplying its government and contractors while Australia has banned the company from supplying equipment for a 5G mobile network.Huawei, which has repeatedly denied engaging in intelligence work for any government, is one of several Chinese tech companies that have come under US government scrutiny as a trade war between the two countries escalates.On Friday, the Hong Kong shares of rival ZTE Corp fell as much as 5.6%, dragging down the sector. The United States has already largely barred Huawei from supplying its government and contractors, while Australia has banned the company from supplying equipment for a 5G mobile network. Citing anonymous people familiar with the matter, the WSJ said the US might offer countries an incentive to shun Huawei by boosting their financial aid for telecoms development. They recouped some losses to trade down 2% around midday while the firm’s Shenzhen shares were down 3%.Washington has been considering increasing financial aid for telecommunications development in countries that shun Chinesemade equipment, the WSJ reported on Thursday.One of the government’s concerns is based on the use of Chinese telecom equipment in countries that host US militarybases, such as Germany, Italy and Japan, the report added.A US department of commerce spokesman said in a statementthat the department would remain vigilant against any threat to US national security.
The United States urges their allies not to use Huawei network equipment, reportedly out of national security concerns.