Telecom

How the new Huawei ban will affect the U.S.

In this image, the Huawei sign and logo is displayed prominently on a building.
Photo: Jaap Arriens/NurPhoto via Getty Images

Industries began tallying up the likely costs of President Trump's latest executive orders this week targeting Huawei, the Chinese telecom manufacturer that sits at the center of the U.S./China trade dispute, after Trump essentially barred all U.S. telecommunications firms from using its equipment and blocked it from access to U.S.-made goods.

The impact: Major U.S. telecoms don't use Huawei equipment, but roughly a quarter of smaller rural network providers do, according to a Financial Times story, and those companies may have to spend millions to replace those devices.

Expert Voices

Trump may stop Huawei in U.S., but the underseas cable race continues

floating dock with workers installing underseas cable
Workers laying cable in the Baltic Sea. Photo: Jens Köhler/ullstein bild via Getty Images

President Trump's executive order and the Commerce Department’s “Entity List” create new challenges for Huawei’s 5G wireless technology in the U.S. But in the meantime, the Chinese telecom giant is racing ahead under the world’s seas.

Why it matters: Globally, about 380 submarine cables carry the vast majority of international data, from cloud computing to text messaging. These cables will only become more important with the arrival of 5G and other services that will increase the speed and volume of data being transferred.