1. What's The Problem?
The Trump administration had raised concerns over Chinese companies like ZTE and Huawei attempting to extract sensitive information from American companies and this move seems to show how serious America is about its security.
The US has accused these companies of spying for the Chinese government riding on the extensive telecommunications network and growing hardware market that ZTE and Huawei cater.
US house committees have labeled both the companies as security threats in 2012. Other companies like Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc have also been asked to sever ties with Huawei until further notice.
The US is willing to fall behind global competition in terms of telecom technology and customers as Huawei is one of the leaders in that segment, but it’s not willing to compromise on its privacy.