Bank access is restricted by U.S. sanctions on Huawei and other Chinese tech companies.

A bill that would increase sanctions against Huawei and other Chinese 5G businesses and bar them from using U.S. banks has been introduced by a bipartisan group of lawmakers in the United States.

Sen. Tom Cotton, a Republican, and Senate Majority Leader Chuck Schumer support a new bill that would “severely sanction” Huawei and other Chinese 5G manufacturers who conduct economic espionage against the United States.

Sen. Tom Cotton stated this in a statement on Tuesday:

“We cannot permit Huawei and the Chinese Communist Party to have access to Americans’ personal data and our nation’s most sensitive defence systems,” the statement read. “We’ve made great strides in recent years at home and abroad in combating Huawei’s malign attempts to dominate 5G and steal Americans’ data.”

The law would include these businesses on the Treasury Department’s Specially Designated Nationals (SDN) List, thereby blocking them from access to the American financial system. The law intends to hold these “untrustworthy” Chinese businesses accountable for their deeds against the United States.

The ‘trade war’ between the U.S. and China officially began in 2019 with the restriction on Huawei’s ability to purchase any materials from American vendors. In the past, American politicians have attempted to restrict Huawei’s access to American banks, notably by putting out a similar bill in 2020 under the administration of former President Donald Trump.

In response to the bill’s submission, China’s Foreign Ministry denounced the United States for “generalising the notion of national security” and “abusing state authority to restrict Chinese firms.”

In reaction to the proposed legislation, China will “firmly safeguard” the rights and interests of Chinese enterprises, according to Wang Wenbin, a spokesperson for the Foreign Ministry, who spoke to Reuters.

Other nations outside the US have placed restrictions on Huawei devices. The U.K. Last year, it was forbidden to install Huawei equipment and to use the Chinese corporation for service management outsourcing.

Source: Reuters

Christopher Woodill

About ME

Enterprise technology leader for the past 15+ years…certified PMP, Six Sigma Black Belt and TOGAF Enterprise Architect. I collaborate with companies to help align their strategic objectives with concrete implementable technology strategies. I am Vice President, Enterprise Solutions for Klick Health.

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