Business
US House to vote on bill to address potential Huawei, ZTE threats
The House of Representatives is set to vote next week on a bill to crack down on Chinese telecommunications companies Huawei and ZTE Corp. that have been deemed security threats by the U.S. government.
The House said on Tuesday it will take up a bipartisan bill called the Countering Untrusted Telecommunications Abroad Act that would require the State Department to report on U.S. NATO allies and others using telecommunication equipment or services in their 5G networks from companies like Huawei and ZTE.
“We need to redouble our efforts to protect our national security and interests, help our allies take vital measures for their own security, and stand firmly in defense of fundamental rights,” said Representative Susan Wild, the Democratic sponsor of the measure.
The legislation would also require publicly traded companies to disclose whether they have contracted to use Huawei or ZTE or services covered under the bill. Huawei and ZTE did not immediately comment.
The bill would also mandate a report on telecommunications vulnerabilities in U.S. embassies overseas, and direct the U.S. State Department to identify key telecommunications infrastructure projects to promote U.S. national security.
The Federal Communications Commission in November banned approvals of new telecommunications equipment from Huawei and ZTE, saying they pose “an unacceptable risk” to U.S. national security.
Last year, the Chinese embassy in Washington said the FCC “abused state power and maliciously attacked Chinese telecom operators again without factual basis.” Huawei has repeatedly denied allegations of wrongdoing and said the U.S. government has “unlawfully and irrationally” targeted the company.
Washington’s efforts to counter the Chinese tech giants come amid U.S. fears that Beijing could use them to spy on Americans. Washington has for years pressured U.S. allies not to use Huawei or ZTE equipment from 5G networks or remove gear from existing networks.
In 2019, Congress directed the FCC to order U.S. telecoms carriers receiving federal subsidies to purge their networks of telecoms equipment posing national security risks, with promises of reimbursement.
The FCC designated Huawei and ZTE as threats, requiring U.S. companies to remove their gear or be frozen out of an $8.3 billion government fund to purchase new equipment. However, to fund the so-called “rip and replace” effort, Congress only appropriated $1.9 billion.
The FCC said last year companies need another $3 billion to remove from U.S. networks equipment made by Chinese telecoms giants Huawei and ZTE bringing the total estimated cost to $4.98 billion.
The dollar steadied against major peers on Thursday, continuing its near paralysis of the past two days before more concrete announcements on tariffs from U.S. President Donald Trump.
A spate of central bank policy decisions are also due over the next week, with the Bank of Japan widely expected to raise interest rates at the end of a two-day meeting on Friday.
Rate decisions from the U.S. Federal Reserve and European Central Bank are scheduled for Wednesday and Thursday of next week, respectively.
The dollar index – which measures the currency versus six top rivals, including the euro and yen – was flat at 108.25, following two days of gains of around 0.1%.
On Monday, it tumbled 1.2%, its steepest one-day slide since November 2023, as Trump’s first day in office brought a barrage of executive orders, but none on tariffs.
So far this week, Trump has mooted levies of around 25% on Canada and Mexico and 10% on China from Feb. 1. He also promised duties on European imports, without giving details.
“President Trump has so far taken a less hostile-than-expected approach to China,” amid overall “softer-than-expected policies and tone on tariffs”, said Carol Kong, a currency strategist at Commonwealth Bank of Australia.
At the same time, “we are cautious (that) risk sentiment remains fragile and can quickly turn sour if President Trump strikes a more aggressive tone.”
The Chinese yuan was little changed at 7.2812 per dollar in offshore trading .
Wall Street’s main indexes rose Wednesday, with the S&P 500 hitting an intraday record high thanks to strong Netflix earnings and a rally in tech shares.
Japan’s yen edged up about 0.1% to 156.40 with markets pricing 95% odds of a quarter-point hike on Friday.
The euro was flat at $1.0411. The ECB is widely expected to cut rates by a quarter point next week.
The Canadian dollar held steady at C$1.4386 against the greenback. The Bank of Canada is seen as likely to reduce rates by a quarter point next Wednesday.
The Mexican peso was little changed at 20.47 versus the U.S. currency.
Oil prices dipped in early trade on Thursday, extending losses amid uncertainty over how proposed tariffs by U.S. President Donald Trump on several countries would impact global economic growth and energy demand.
Brent crude futures fell 23 cents, or 0.3%, to $78.79 a barrel at 0135 GMT, while U.S. West Texas Intermediate crude (WTI) eased 18 cents, or 0.2%, to $75.26.
In its previous session, Brent futures settled at $79.00 in a fifth straight day of losses. WTI futures settled at $75.44 in a fourth consecutive day of declines.
Trump has said he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine. He added these could be applied to “other participating countries” as well.
He also vowed to hit the European Union with tariffs, impose 25% tariffs against Canada and Mexico, and said his administration was discussing a 10% punitive duty on China because fentanyl is being sent to the U.S. from there.
Meanwhile, estimates from an extended Reuters poll showed that on average U.S. crude oil stockpiles were expected to have fallen by 1.6 million barrels in the week to Jan. 17.
Gasoline stockpiles were estimated to have risen by 2.3 million barrels last week, and distillate inventories were likely to have gained 300,000 barrels.
The poll was conducted ahead of the American Petroleum Institute industry group’s report and another from the Energy Information Administration at 12:00 p.m. ET (1700 GMT) on Thursday.
European wind shares fell on Tuesday (January 21).
The reports were delayed by a day due to the Martin Luther King Jr. Day federal holiday on Monday.
Pakistan and Saudi Arabia have reaffirmed their commitment to further strengthening the bilateral economic ties for shared prosperity.
The commitment was expressed when Finance Minister Muhammad Aurangzeb met with his Saudi counterpart Mohammad bin Abdullah Al-Jadaan on the sidelines of World Economic Forum Annual Meeting in Davos.
Muhammad Aurangzeb highlighted the key reform measures undertaken by the Government to promote economic stability and sustainable growth.
He briefed him on structural reforms, fiscal discipline and regulatory improvements that have contributed to an improved investment climate in Pakistan.
Earlier, Aurangzeb met Anna Bjerde, Managing Director of Operations at the World Bank.
They discussed cooperation between Pakistan and the World Bank, with a particular focus on Pakistan’s macroeconomic stability.
The finance minister emphasized the government’s strong partnership with the Bank and expressed hope that the World Bank would continue playing a key role in the country’s socio-economic development.
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