US President Donald Trump may sign an executive order this week that bars US companies from using telecommunications equipment manufactured by companies that pose a threat to national security, paving the way for a ban on dealing with China's Huawei.
The executive order, which will not mention specific countries or companies, has been under consideration for more than a year but has been repeatedly delayed, the sources said, adding that the signing of this executive order may be delayed again amid concerns about what it could mean for a future deal with China.
The executive order is based on the International Economic Emergency Law (IEEPA), a federal law that gives the US President the authority to regulate trade after a national emergency is declared, in response to any unusual threat to the United States.
The law also gives the US president the authority to authorize the US Commerce Secretary to review any transactions involving companies perceived as risky. Reuters said the Executive Order would direct the Ministry of Commerce - in cooperation with other government agencies - to develop a plan for implementation.
The executive order, if it occurs, comes at a sensitive time for China-US relations, as trade war and tariffs between the world's two largest economies intensify.
The United States believes the equipment produced by China's Huawei - the world's largest supplier of communications equipment and the world's second-largest smart phone company - could be used by the Chinese state for espionage, but Huawei repeatedly denied the allegations.
The United States urges other countries not to use Huawei equipment in fifth generation 5G networks, indicating that the equipment is unreliable.
In August, Donald Trump signed a bill that would ban the US government from using Huawei equipment and another Chinese supplier, ZTE, but the new executive order would extend the ban to all US companies.
While many major US carriers have cut ties with Huawei, it is estimated that about a fifth of the small rural telecommunications companies in the US use either Huawei-made equipment or the other Chinese company ZTE.
The consortium, which has fewer than 100,000 subscribers, estimated 25 percent of its members had Huawei or ZTE equipment in their networks.
0 Comments