It's been dubbed the 'Huawei ban'.

What does this mean for security?

And how will this affect Huawei's global ambitions?

Welcome back to China Uncensored.

I'm Chris Chappell.

Last week, US President Donald Trump signed an Executive Order

saying no way to Huawei.

Well technically, it doesn't actually say that.

What it does say is "Executive Order on Securing

the Information and Communications Technology

and Services Supply Chain."

But a title like that is totally un-tweetable.

So everyone's just calling it the 'Huawei ban.'

To be fair, Trump's executive order doesn't actually name Huawei.

But everyone knows who he's talking about.

It's like that time in college when the dining hall

took away all the waffle makers

because somebody kept breaking in at 2am

and stealing waffles.

Dave.

Anyway, Huawei is the world's largest provider of networking gear

and the world's number two smartphone vendor,

behind Samsung.

For years, congressional committees, the FBI, the NSA,

and others have flagged close ties between Huawei

and the Chinese Communist Party.

Last year, the US government banned...

the US government...

from using equipment made by Huawei

and the other big Chinese telecom company, ZTE.

That was over security concerns.

But the new executive order took that ban a big step further.

First, Trump declared a "national emergency."

And before you think,

“Here Trump goes again,

declaring another national emergency,”

it's actually pretty common.

Obama declared 13 national emergencies.

George W. Bush declared 14,

and Clinton also declared 14.

So really, there are a lot more national emergencies

for President Trump to declare before his term is up.

He's probably got a list.

Anyway, here's how Trump's current national emergency works.

The Executive Order itself stops the use of IT goods and services

from all companies subject to “foreign adversaries”

that pose “unacceptable risks” to national security.

Then, the Commerce Department effectively labeled Huawei

as belonging to one of those “foreign adversaries”—

i.e.

China—

by putting Huawei and 72 of its affiliates

on the Commerce Department's “Entity List.”

The Entity List is a trade blacklist.

Anyone on it is barred from buying

parts and components from US companies

without getting the US government's approval first.

And that approval is no easy thing.

That's because the ban has a so-called

"policy of presumption of denial."

Meaning, it's a no unless there's a really,

really good reason to say yes.

And  "the U.S.

Government has determined that there is

reasonable cause to believe that Huawei

has been involved in activities contrary to the national security

or foreign policy interests of the United States."

So I'm guessing Huawei purchases are generally going to be a “no.”

"All the witnesses could you please raise your hand

if you'd use products or services from Huawei or ZTE?

None of you would.

You obviously lead intelligence services,

so that's something of a biased question.

Raise your hand if you would recommend that

private American citizens use Huawei

or ZTE products or services?

None of you again are raising your hand.

Thank you for that."

Senator Cotton raises an important point.

Or I assume he did because I was distracted

by the way that he kept mispronouncing Huawei.

It's Huawei, with an H, people.

It's not Wah-Wei.

Stop saying it like that!

Ahem.

Now if you're wondering what

the heads of US intelligence services know about Huawei

that the average person does not,

here's FBI Director Christopher Wray.

“It provides the capacity to maliciously modify or steal information,

and it provides the capacity to conduct undetected espionage.”

Simply put, officials are worried that Huawei

will help the Chinese regime spy on the US

or attack America's cyber infrastructure.

How might Huawei do that specifically?

One way is “that companies like Huawei

might sell products compromised by 'back doors'

that allow Chinese government hackers

access to data or surveillance."

Although frankly,

I'm more concerned that if we put all our technology

in the hands of equipment made in China,

one day it will simply stop working.

And when we try to reach customer service,

we keep getting redirected to the Chinese consulate.

And they don't even have our package!

Now, back in 2011 and 2012,

Vodaphone did find hidden backdoors in Huawei equipment.

And there have been other reports of Huawei backdoors.

But it's not clear whether Huawei

purposefully included these backdoors,

or whether they were accidental security flaws

resulting from bad design.

Either way is bad.

So is there smoking gun evidence that Huawei

is putting back doors into its technology,

designed to allow it to spy on users?

No.

But there's plenty of reason to believe

they would be motivated to.

Like Huawei's uncomfortably close links

to the armed wing of the Chinese Communist Party—

the People's Liberation Army.

"Huawei is the PLA.

And if the senior executives of Huawei don't like me saying that,

then bring it.

You are—and I would love to have discovery on this one—

you are the People's Liberation Army."

I know what you're thinking.

Steve Bannon, he's probably just trying to rile people up

by mispronouncing Wah-Wey

and mentioning the PLA.

It turns out, no.

Bannon just doesn't know how to pronounce Huawei, either.

Also, the founder and CEO of Huawei, Ren Zhengfei,

was an engineer with the People's Liberation Army.

And last year for the 40th anniversary of China's

so-called “reform and opening-up,”

Ren Zhengfei was hailed one of 100 “excellent private entrepreneurs”

who “firmly safeguard the leadership of the Chinese Communist party.”

So much for being a totally independent private company.

But the Trump administration's moves have already hamstrung Huawei.

For now, the Commerce Department's Entity List has had the biggest effect.

That's the one that prevents US companies from selling to Huawei.

According to Bloomberg,

top US tech companies have already begun to cut off

the supply of microchips and other technology to Huawei.

Chinese state-run media has gone on the defensive,

saying the Huawei ban is nothing

and we'll be totally fine without chips from American suppliers,

and really, who wants Made in America chips anyway?

Huawei's chip arm HiSilicon said last Friday

it's been prepared for the scenario

that it could be banned from purchasing U.S. chips and technology.

HiSilicon says it's been "vigorously investing

in self-developed technologies,

and is able to ensure a steady supply of most products

to make sure Huawei will be able to continue serving its customers."

Or, as HiSilicon president said in a letter cited by Straits Times,

“now is the time for 'all the spare tyres in the safe' to become useful.”

Ok, firstly, who keeps tires in a safe?

Secondly, what does a microchip company do with tires, anyway?

I think what we really need is a ban on stupid metaphors.

Anyway, Huawei's CEO also insisted that Huawei

is totally ready for the ban—

while also briefly noting that “the company's annual revenue growth

may undershoot 20 percent.”

That's a lot to... “undershoot”.

It's like, if you're flying from New York to San Francisco,

and you undershoot by 20%,

you'll end up in Battle Mountain, Nevada.