President Donald Trump is considering banning U.S companies from using telecommunication equipment made by China's Huawei Technologies Cos Ltd (HWT.UL) and ZTE Corp, Reuters reports.
The ban would be the latest step by the Trump Administration to cut out two of China's biggest network equipment companies from the U.S market. This is driven by allegations that Huawei and ZTE work at the command of the Chinese government and may be used to spy on Americans.
The executive order, which is expected to be issued as early as January, 2019 would direct the Commerce Department to block U.S companies from purchasing equipment from foreign telecom manufacturers that pose national security risks.
Though Huawei and ZTE are unlikely to be mentioned in the order, it is presumed that the commerce department would interpret it as an approval to restrict access for the spread of equipments made by the two companies.
Also, the order which follows the passage of a defense policy bill in August that barred the U.S. government itself from using Huawei and ZTE equipment, would invoke the International Emergency Economic Powers Act, a law that gives the president authorization to regulate commerce in response to a national emergency that threatens the U.S.
The development when finalized, may affect U.S wireless carriers as they seek for partners in preparation for the Fifth Generation (5G) network expected to launch in 2019.
