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U.S. lawmakers propose new bill blocking Huawei’s access to its banks

U.S. lawmakers propose new bill blocking Huawei’s access to its banks
U.S. lawmakers propose new bill blocking Huawei’s access to its banks

U.S. lawmakers have reportedly been planning to introduce a bill that can potentially block Huawei technologies Ltd from getting access to U.S. banks for particular transactions. This bill is an attempt to slow down the Chinese giant as earlier sanctions had failed to hamper its business growth. 

Apparently, the bill’s sponsors include Republican Senator Tom Cotton; Mike Gallagher, the House Republican and Charles Schumer, the Senate Democrat who would be banning firms in the U.S. from participating in any major transactions with other overseas companies that manufacture 5G telecom technology as well as engage in industrial espionage.

According to reliable sources, if the bill were to be passed and Huawei to be designated, the firm will be rejected by the U.S. banks in particular deals with the customers across the world as majority of dollar payments are cleared through the U.S. financial institutions.

Schumer had stated that it was time for the Trump administration to take strict action to block Huawei from getting into the U.S. financial system. China dominating the 5G network globally poses a serious threat to national security.

Seemingly, the legislation has been considered to be a part of a larger campaign to bring down the leading producer of telecoms equipment as the company has flourished despite several American sanctions.

Reportedly, the Trump administration had placed Huawei on blacklist, also called the entity list, a year earlier based on national security concerns. This had forced various companies to obtain a specific license to sell to it.

Gallagher commented that the entity list has not done the job while elaborating on the legislation goals. The House Republican admitted that policy differences present in the current government can potentially pose challenges to implement the proposed sanctions on the Chinese telecom giant.

 

Source Credit-https://money.usnews.com/investing/news/articles/2020-03-12/us-lawmakers-seek-to-curb-huaweis-access-to-us-banks-documen

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.