Donald Trump has declared a "national emergency" which will give the USA government sweeping powers to prevent American companies doing business with foreign suppliers of telecommunications equipment including Huawei. The move would be aimed at addressing perceived dangers posed by Chinese tech maker Huawei, which the USA has accused of spying on behalf of the Chinese government.
The order would invoke the International Emergency Economic Powers Act, which gives the president the authority to regulate commerce in response to a national emergency, and would direct the US Department of Commerce, working with other agencies, to draw up a plan for enforcement, the sources said.
The issue has taken on new urgency as USA wireless carriers rollout 5G networks.
Under the order, Trump will be able to stop foreign tech firms from trading in the US, which could block Huawei's USA business interests. US lawmakers are concerned because, under China's communist regime, Huawei could be called upon to gather intelligence from consumers and corporations around the world.
He said Huawei had long cooperated with Britain's National Cyber Security Centre's oversight of its technology, and it had improved its software engineering capabilities to make them the equal of competitors.
The Australian government banned Huawei in August a year ago.
Only about 2 percent of telecom equipment purchased by North American carriers was Huawei-made in 2017.
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Mr Trump does not name any company specifically in the order.
The move was made as a way of allowing the federal government to prevent companies from doing business with other countries, including the Chinese firm Huawei, the Washington Post reported.
The US is also pushing other countries not to use Huawei's equipment in 5G networks.
The restrictions prevented suppliers from providing ZTE with US equipment, potentially freezing the company's supply chain, but the restrictions were suspended in a series of temporary reprieves, allowing the company to maintain ties to USA suppliers until it agreed to a plea deal a year later.
The Rural Wireless Association, which represents carriers with fewer than 100,000 subscribers, estimated that 25 percent of its members had Huawei or ZTE equipment in their networks, it said in an FCC filing in December.
In the past, Huawei has denied that it spies for the Chinese government and earlier this year company chairman Liang Hua said that if asked to spy by the government, he would defy them. Meng, who maintains her innocence, is fighting extradition.