President Trump on Wednesday signed an executive order to bar USA companies from using telecommunications firms deemed a national security risk, a move targeted at both present and future liabilities but one that is poised to affect China's Huawei Tech.
The U.S. government is already prohibited from using Huawei's telecommunications equipment. The order might eventually name specific companies or countries as Commerce carries out the process.
President Donald Trump has declared a national emergency to protect USA computer networks from "foreign adversaries".
Under the International Emergency Economic Powers Act, the president has the authority to regulate business decisions in response to a clear national threat, and the "national emergency" declaration directs the US Department of Commerce to lead enforcement efforts.
Canadian authorities last December arrested Huawei's Chief Financial Officer Meng Wanzhou at the request of the US, which seeks her extradition over allegations of violating Iran sanctions.
It's no secret that USA's defense department is having some issues with the Chinese telecommunication giant, Huawei.
The report, which cites three unnamed USA officials familiar with the matter, says the order has been under consideration for more than a year, but has been delayed several times - and it may get delayed again. This has always been denied by Huawei.
Huawei is pushing to take a global leadership position in 5G technology, but many American officials suspect the company's products could be used by Beijing to spy on Western governments and companies.
"There is no mandate in (China's national intelligence) law that we have to had over customer data or intelligence that we do not wish to hand over or we think should be sensitive".
Federal Communications Commission (FCC) Chairman Ajit Pai, who has called Huawei a threat to USA security, said Wednesday that "given the threats presented by certain foreign companies' equipment and services, this is a significant step toward securing America's networks".
The Federal Communications Commission voted unanimously to deny China Mobile Limited's bid to provide telecommunications services within the U.S. last week.
The Rural Wireless Association, which represents carriers with fewer than 100,000 subscribers, estimated that one-quarter of its members had Huawei or ZTE equipment in their networks, it said in an FCC filing in December a year ago.