The government of the United States is making an attempt to persuade all the internet and wireless service providers in its allied nations to stop using the equipments of telecommunication from Huawei Technologies which is a China based company. This move by the government of US will increase the pressure over the electronics giant which is already under the scrutiny of several intelligence agencies from the west. It is under the scrutiny because of its possible ties with the Chinese government thus resulting into the possibility of its equipments being used for the purpose of espionage.
According to a report from WSJ the officials from the US government are already approaching their counterparts in their allied nations where the equipments from Huawei are widely used. They see the usage of those devices as a potential threat to the cyber security. US has already prohibited Huawei from providing its equipments to its government offices. Along with the United States, Australia has also banned Huawei as an equipments provider for its 5G network. However, the company has consistently denied about any kind of involvement with the government of any country.
It has also denied any kind of intelligence activities in favor of any government. Huawei is one amongst the several tech companies from China that is currently under the scrutiny of the government of US because of the trade war amongst the two nations. The shares in Hong Kong market of ZTE Corp had dropped down by more than 5 % which has further pulled the sector down. On the other hand, the shares of the company in the Shenzen market have dropped down by 3 percent. The most critical thing is that, because of the US government’s moves, the value of ZTE has fallen down to its half in this year.