The U.S. has reportedly announced support from 49 countries, representing 2/3rd of the global economic output, for its ‘Clean Network’ initiative. People with knowledge of the matter have stated that the recent initiative is aimed at limiting the access of Chinese companies to sensitive sectors such as 5G mobile networks and cloud computing.

As per the statement made by Keith Krach, Undersecretary for Economic Growth, Energy, & the Environment, the U.S. has imposed restrictions for Chinese companies, such as Huawei, to limit their access to crucial technologies due to national security threats. The country believes that this initiative could adversely impact the company, which may result in a shortage of chips for its hardware approximately by 2021.

Krach is the leading advocate of the Secretary of State Michael Pompeo’s drive to eliminate the adoption of Chinese technology in systems globally, which is a part of the administration effort to constrain the global ambition of China. In addition, he previously visited European nations, Taiwan, and the Middle East to secure high commitments from the governments to become a part of the U.S. effort.

Several companies and countries across the globe are questioning who to trust, the answer for which, Mr. Krach believes, is certainly not Huawei, as the company is alleged to be the backbone of the surveillance state of the Chinese Communist Party. He further added that the success of the recent Clean Network initiative has been significantly driven by the ongoing effort to limit Huawei’s access.

China’s embassy declined to immediately respond to requests for comments. Additionally, Huawei has constantly denied claims regarding the national security risks from using its technology.

Despite the U.S. sanction, the telecommunications equipment company has informed the wireless operators in its country that its own component inventory can significantly support the base station construction in 2021 & beyond.

Guo Ping, Rotating Chairman, has also recently cited that the company has sufficient inventory for the communication equipment business.

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https://www.bloombergquint.com/politics/u-s-sees-more-support-for-clean-network-plan-to-counter-china