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<![CDATA[Donald Trump signs executive order declaring national emergency on information security, laying ground for US ban on China's Huawei]>

US President Donald Trump signed an executive order on Wednesday declaring a national emergency barring the use of telecommunications equipment made by companies that are deemed a threat to national security, clearing the way for an outright ban on products made by Huawei Technologies of China.

The US government claims that Huawei's equipment poses a security risk because the company might acquiesce to demands from Beijing to allow access to networks and private users' data " claims that the company and its chief executive, Ren Zhengfei, have repeatedly denied.

Chairman Liang Hua said on Tuesday in London that the company, the world's largest telecommunications equipment supplier, would include provisions in its government contracts not to facilitate "back door" espionage by Beijing.

The US government has already prohibited its agencies from using devices made either by Huawei or another major Chinese telecoms supplier, ZTE Corp.

Banning the use of Chinese-made 5G, or fifth-generation, technology comes at a critical time in US-China relations, given the imposition of tariffs by both sides over the past several months on hundreds of billions of dollars worth of goods.

More punitive duties are likely to come in the weeks ahead unless the world's two leading economies can reach a trade agreement.

On Tuesday, Reuters reported Trump was due to sign the executive order sometime this week.

Seemingly in response, Geng Shuang, China's Ministry of Foreign Affairs spokesman, said on Wednesday during a press briefing translated by the South China Morning Post, that the US was "abusing its power to maliciously smear and beat down on certain Chinese companies".

Chinese Foreign Ministry spokesman Geng Shuang has accused the US of "abusing its power to maliciously smear and beat down on certain Chinese companies". Photo: AP

"We urge the US to stop using the pretense of national security to carry out its unreasonable suppression of Chinese companies, and to provide a fair and just environment for Chinese companies investing and operating normally in the US that is free of prejudice."

The US is playing catch-up against foreign rivals including China.

Huawei will sign 'no-spy agreements' to win contracts, chairman says

Last month it unveiled plans for the largest-ever auction of radio spectrum to support the development of 5G, the mobile communications technology predicted to revolutionise the so-called internet of things.

At the time Trump called the competition to develop 5G a race "America must win".

5G, which promises wireless communications delivered 100 times faster than current standards, could enable the development of autonomous driving, smart cities and virtual reality, and bring billions of dollars in economic benefits to nations that can keep up with the technology.

Its importance was highlighted by its inclusion in the December 2017 US National Security Strategy outlined by the Trump administration.

Trump expected to sign order this week paving way for Huawei ban in US

The US stance has split many of its European allies.

Britain's foreign intelligence chief has said that an outright Huawei ban may be excessive, while Italy's deputy prime minister asserted that his country's intelligence had no security concerns about the Chinese company.

A Huawei company logo at a bus stop in Mexico City. Photo: Reuters

German economy minister Peter Altmaier has said that any restrictions cannot involve targeting specific companies but will have to involve security standards for all potential service providers.

While China has its 5G champion in Huawei, Finland has Nokia and Sweden has Ericsson. The US, however, has no hardware maker ready to come to market with scale and depth.

Additional reporting by Owen Churchill

This article originally appeared on the South China Morning Post (SCMP).

Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

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