Although Huawei has become one of the most popular consumer smartphone brands in the world, selling more phones than Apple globally, western governments have sounded the alarm over Huawei's core telecommunications business, due to US-led concerns that its equipment contains flaws and "back doors" that enable spying by the Chinese government.
Neither Huawei nor ZTE are mentioned by name in the order, the report says, but the usa is looking to cut the two companies out of the United States network equipment market, concerned that they may be working with the Chinese government and that their equipment can be used to spy on Americans.
The order follows the passage of a defence policy bill in August that barred the U.S. government itself from using Huawei and ZTE equipment.
We've seen various unofficial warnings and leaks, such as a DNC advisory leaked earlier this year that warned political campaigns against using Huawei hardware.
Huawei and ZTE declined to comment. "Some countries, without any evidence, are abusing the national security and politicizing and putting up all sorts of barriers on the normal scientific and technological exchanges - this is to shut themselves off from the openness, progress and fairness".
In August, Trump announced a ban that prevented Huawei from supplying 5G telecommunications equipment to US telecom providers.
Sources indicate the administration has been working on an executive order for most of the year and is close to final language.
According to Reuters, the ban would particularly hurt rural operators who have relied on Huawei and ZTE equipment as they tend to be less expensive. It estimates that 25% of its members had Huawei or ZTE equipment in their networks, it said in a filing to the Federal Communications Commission earlier this month. Smaller, rural US operators now use a significant amount of ZTE and Huawei technology. In some recent filings, smaller carriers indicate ZTE and Huawei equipment generally runs about twenty-five percent of the cost of equipment from manufacturers like Ericsson.
In March, FCC Chairman Ajit Pai said "hidden "backdoors" to our networks in routers, switches - and virtually any other type of telecommunications equipment - can provide an avenue for hostile governments to inject viruses, launch denial-of-service attacks, steal data, and more". The FCC estimates 25 percent of rural carriers in the US now have ZTE or Huawei equipment being used in their networks.