President Donald Trump may take new action against Chinese telecommunications equipment makers Huawei and ZTE. The President might issue an executive order that would bar U.S. companies from buying telecom gear from either, per a report by Reuters.
Many in the U.S. government insist Huawei and ZTE have deep ties to the Chinese government. That relationship could give China the power to spy on the U.S., a claim Huawei has denied many times. Trump has been considering the executive order for more than eight months. The order would rely on the Department of Commerce to block equipment purchases from “foreign telecommunications makers that pose significant national security risks.”
Huawei and ZTE themselves may not actually be named in the order. Such an order would hinge on the International Emergency Economic Powers Act, which gives the President power to govern commerce directly when a national emergency threatens the U.S. Trump has already barred the U.S. government itself from purchasing equipment from Huawei and ZTE.
The four largest carriers mostly rely on equipment from Ericsson, Nokia, and Samsung, but smaller, rural operators do use gear from Huawei and ZTE. They are worried the Trump administration will force them to rip out existing Chinese-made gear at their own expense. Reuters says Trump may issue the some time this month.
