Trump Declares National Emergency, Attacks Blockchain-Friendly Huawei

The United States has long accused the company of spying and believes it to be a threat to national security. The U.S. Department of Commerce has announced that it will be adding Huawei Technologies and its affiliates to its Industry and Security (BIS) Entity List. This effectively means that no U.S. company can sell or transfer technology to Huawei without first obtaining a license from the BIS. According to Commerce Secretary Wilbur Ross, the move will “prevent American technology from being used by foreign-owned entities in ways that potentially undermine U.S. national security or foreign policy interests.” Interestingly enough, Huawei has offered support for the development of blockchain technology. In the past year or so, Huawei has been aggressive in its plans to expand its business outside of mainland China. Although it has market dominance in much of Europe, the telecommunications giant still wishes to eat away at Apple’s market share. In February of last year, Huawei announced an unprecedented global initiative called the Blockchain Service (BCS). Previously only available in mainland China, the blockchain-based cloud service was one of the company’s major rollouts last year. The service covers identity verification, food source tracing, healthcare, data transactions, IoT technologies, and many other areas. The ban against the company will likely put a significant dent in Huawei’s aspirations for global expansion. It is unclear, however, what effect—if any—it will have on the BCS initiative. Do you believe Huawei’s Blockchain Service will be hindered because of this ban? Let us know your thoughts in the comments below.