White House said to mull new year executive order to bar Huawei, ZTE purchases

US pressure on Chinese telecommunications equipment providers was ratcheted up on Thursday after Reuters reported that President Donald Trump is considering an executive order to declare a national emergency that would bar US companies from using network gear made by Huawei Technologies and ZTE Corp, according to three sources familiar with the situation.

The move would mark the latest step by the Trump administration to cut Huawei and ZTE, two of the world’s biggest telecoms equipment suppliers, out of the US market. The US alleges that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.

Huawei and ZTE did not respond to an e-mailed request for comment on the Reuters report by the Post. Huawei has previously denied its network gear poses a security threat, saying it is a private company that is part-owned by its employees.

The executive order, which has been under consideration for more than eight months, could be issued as early as January and would direct the Commerce Department to block US companies from buying equipment from foreign telecoms gear makers that pose significant national security risks, sources from the telecoms industry and the administration told Reuters.

While the order is unlikely to name Huawei or ZTE, a source said it is expected that Commerce Department officials would interpret it as authorisation to limit the spread of equipment made by the two Chinese companies, according to the Reuters report. The sources said the text for the order has not been finalised.