Huawei, a telecommunication instrument manufacturer from China will now be facing an uphill task of entering into the developed economic market. The recent 5G equipment manufactured by Huawei banned in New Zealand, Australia, and the United States due to concerns of communication monitoring by the Chinese company. According to the Kyodo News reports the Japanese government will be deciding to block Huawei and its smaller counterpart ZTE from the network hardware procurement. Even the Canada is considering such a ban after its CFO was arrested last week by the Canadian authorities.
The decision comes from Japan in less than a month after the United States had requested many of the overseas allies to block the Chinese cellular hardware. The government of US was concerned with over monitoring of the U.S. Military base communications. The U.S. will also be reportedly providing equipment and financial subsidies to countries that comply and reduced assistance for the nations that don’t comply. Currently, there are three carriers in Japan that have agreed to stop using the Chinese 4G equipment and not to introduce any 5G hardware into their network.
Huawei had denied the accusations, saying that types of equipment doesn’t constitute any form of security risk and will continue to offer 5G hardware to all countries. The Chinese government has defended the companies and protested to the international community about the ban; however, most of them have failed to make the impact on the ban.
ZTE was entirely stopped from doing business after Government had banned its telecommunication products. The global market is concerned as the US and China trade tussle could blow out on the other sectors.