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

Pablo Tucker
December 5, 2019

Huawei Technologies Co Ltd plans to shift its research center to Canada from the United States, Ren Zhengfei, the founder of the Chinese telecoms equipment maker, said in an interview with Canada's Globe and Mail.

"And that will be relocated to Canada", Mr Ren told the Globe and Mail, adding that the company will also manufacture some mobile network equipment outside China. USA authorities say the company is a security risk, which Huawei denies, and announced curbs in May on its access to American components and technology.

Chief Financial Officer of Huawei, Meng Wanzhou happens to be Ren's daughter who got arrested by the Canadian Police the previous year on the basis of a warrant issued by the U.S. She has been fighting extradition to the United States for charges of having violated sanctions against Iran and has been out on bail.

The geographical move, along with recent reports suggesting the company is now completely non-reliant on American parts to create its hardware, suggests the company is making permanent decisions to distance itself from the United States instead of waiting to see if its sanctions will ever be lifted. The firm has previously denied it is a risk to U.S. national security.

Commenting on her case, Ren said that it is an example of "obvious political interference from the U.S.".

The move to Canada will involve trimming the majority of the research centre's staff by 600 individuals to around 250 total employees.

It has one of the world's biggest corporate research budgets and has said this year's spending will rise 20 per cent to $17 billion US.

In July, Huawei announced it would bring high-speed wireless services to 70 communities in the Arctic and northern Quebec.

In May, Huawei was put on a trade blacklist by the United States over national security concerns.

Huawei, China's first global tech brand, is scrambling to preserve its business in the face of possible loss of access to US components, which threatens to damage its smartphone business.

The blacklist was imposed by the Trump administration in May, with most US companies banned from selling to the Chinese company.

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