US lawmakers seek to restrict Huawei’s access to US banks

us lawmakers restrict huawei access

U.S. lawmakers plan to introduce a bill that is aimed at blocking Huawei from accessing U.S. banks for certain transactions.

The sponsors of the bill include top Senate Democrat Charles Schumer, Republican Senator Tom Cotton, and House Republican Mike Gallagher. The bill would ban the U.S. firms from participating in the production of “significant” transactions with foreign companies that produce 5G telecommunications technology.

But without the clear definition of “significant” transactions, banks would face a tough time to implement the rules as any violation may attract civil or possibly criminal penalties. That would compel regulators to develop their own more concrete definitions.

About the bill, an American politician, Schumer said in a statement: “It is time for the Trump administration to take swift and forceful action to block Huawei from accessing the U.S. financial system.”

He further said that allowing the Chinese telecom giant to dominate global 5G market could threatenthe national security.

Citing national security concerns, the Trump administration placed Huawei on a blacklist known as the “entity list” last May, forcing some firms to seek a special license to sell to it.

A former Treasury official, Matthew Tuchband, said: “The legislation would result in a much more complex web of prohibited and permitted transactions that would be relatively challenging for an agency to implement and likely very difficult for the regulated public, particularly the banks, to follow.”