The US government is said to have requested lawmakers and telecom companies in allied countries to avoid using equipment from Chinese firm Huawei Technologies over cybersecurity concerns, according to a report by The Wall Street Journal.
Huawei came under the radar of the US government after questions were raised over the affiliation of Huawei and other Chinese technology companies with the Chinese government, which could reportedly pave way for espionage.
Earlier this year, the US government banned its agencies from using telecom equipment from companies like Huawei and ZTE Corp. and it also asked the general public to refrain from using Huawei’s devices citing risks of spying.
The government is now said to be concerned about the use of these devices in countries that have US military bases. The US is said to be thinking of providing more financial assistance to the countries that stand with it in this matter, for the development of telecommunications.
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This issue put particular pressure on technology stocks in China and companies like Foxconn Industrial Internet Co. and ZTE Corp. saw their stocks drop. As trade talks between the US and China are set to take place next week, the Chinese stock market is feeling the heat and shares of several companies fell on Friday.
The US stock market is also likely to open lower on Friday due to a couple of factors including the drop in oil prices.