Final blow: The United States can block Huawei from the financial system, banning the use of the dollar to trade

Although the U.S. Department of Commerce has issued heavy sanctions on Huawei, it seems that the Chinese giant is unharmed. Even CEO Ren Zhengfei also stated that Huawei can live long and become the No. 1 smartphone manufacturer without going to the US.

According to a Reuters report, the United States is moving to launch a final punishment on Huawei, in order to be sure to defeat this giant. It is a complete ban on Huawei from the US financial system, putting Huawei on the special list of the US Treasury Department and making the Chinese company nearly impossible to make transactions in USD.

The US government considered a strong punishment earlier this year, but was postponed to consider it because it would cause a huge earthquake. Now, after a thorough review and assessment, the US government may launch this punishment according to Huawei’s actions in the near future.

Some of the names that have been blacklisted by the US Treasury are Russian aluminum producer Rusal, Iranian politician and Venezuelan drug lord. However, Huawei is the second largest smartphone manufacturer in the world and many US allies also depend on Huawei to provide 4G mobile networks.

All transactions in US dollars are made through the US financial system, a move to punish Huawei could seriously cripple many systems around the world.

In theory, the U.S. Treasury could grant a waiver license allowing banks to continue to conduct transactions with Huawei. But in a drastic move, the US government may not let that happen.

If Huawei was really banned from the US financial system, it was not allowed to work with banks and conduct transactions in dollars. That would be a very harsh punishment, affecting most of Huawei’s business outside of China.

Reference: androidauthority