The reports keep on coming. Huawei is one of the largest manufacturers of electrical goods including smartphones that have become increasingly popular in USA and India. Reports have again surfaced stating that Huawei’s equipment might be used to for ill factors in large economies.
Amidst these reports, USA is trying to persuade its allies from not using electronics made by the Chinese company. The report first appeared in Wall Street Journal that all allies of USA should stop taking or using telecommunication devices and services from Huawei.
The country sees Huawei as a cyber security threat and some reports have stated that the company might be using these devices for espionage purposes. Though no names have been put out in the open, they all point to the Chinese government using these devices to collect intelligence over other countries. This could be a serious threat to the US and other large world economies.
In the recent past the Trump government has been pushing companies in USA to make electronic and telecommunication goods within their country, much because of these reasons. The state is also looking at units of manufacturing, other than China, where they can build electrical devices to be used for communication and storage purposes.
USA considers hosting and usage of Chinese equipment on their military bases around the world a threat. They have bases in countries like German, Italy and Japan. If the orders go through, it will be a big blow for Huawei and they will lose much of its business in these and other countries.