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US plans to ban Huawei from Banking system to halt transaction in Dollars with customers
By taking a fact that the US wants to play with Huawei as a bargaining chip against China, the US administration now considering banning Huawei from the US financial system to maximize the harm of Entity-List says a report.
The US alleges Huawei of criminal activities including theft of trade secrets, bank fraud, violations of US sanctions against Iran, of which there’s no proof shown by the US.
By moving forward, the US government in May applied a trade ban on Huawei and continuously urging its allies to stop purchasing Huawei’s network equipment citing espionage fears.
According to Reuters, the plan for placing Huawei on the treasury department’s Specially Designated Nationals (SDN) list, is called for action. This move could be revived in the coming months depending on how things go with Huawei, citing people familiar with this matter.
Under the SDN list, Huawei will be prohibited from completing transactions in US dollars, which is considered by the White House National security council and the most aggressive tool against Huawei.
However, Wilbur Ross, the US commerce secretary, said during an interview with CNBC, the US is considering all sorts of measures against all kinds of companies but nothing is imminent at this moment.
To be noted that placing Huawei in the SDN list, would also bring logistical, diplomatic and economic difficulties for the US government.
The source also revealed that the new Rule prohibits American firms or citizens from trading or conducting financial transactions with those trading listed and freezes assets held in the US.
Adding Huawei in the list would halt the business transaction (in USD) of its allies that already relies on the company for its network equipment.
After the failed attempts of the Entity List, Huawei has overcome its effect as soon as possible, which frustrated the Trump administration and the US is now trying to make new moves to harm Huawei on the maximum scale possible.
