Trump Administration Considered Banning Huawei from U.S. Banking System

Investing.com – Chinese telecoms giant Huawei became a focal point again amid the strained US-Sino tension as the US reportedly considered banning the company from the US financial system earlier this year.

Reuters cited three people familiar with the matter that the White House considered putting Huawei on the Department’s Specially Designated Nationals list. If it were the case, Huawei would not be able to trade in US dollar.

Huawei did not respond to the report. The company already started to minimize US influence in its operation if such a deadly blow took place.

On Wednesday, Huawei’s CEO Ren Zhengfei revealed to the media and Mail that Huawei plans to shift its research center to Canada from the US. Its latest flagship smartphone, the Mate 30, also contains zero US parts, The Wall Street Journal reported.

US Commerce Department Secretary Wilbur Ross also said Huawei has been encouraging its suppliers to violate US law by telling them to move operations offshore in a bid to avoid US sanctions.

In May, Huawei was put on a trade blacklist by the US over national security concerns. Suppliers had to apply for special licenses to sell equipment to Huawei.

The news weighed on Chinese telecom companies like Huawei. China’s ZTE Corp-H (HK:) and China Communications Services Corp Ltd (HK:) were down 0.48% and 0.96% respectively on Wednesday morning.