WASHINGTON — President Trump is considering an executive order in the new year to declare a national emergency that would bar US companies from using telecommunications equipment made by China’s Huawei and ZTE, three sources familiar with the situation told Reuters.
It would be the latest step by the Trump administration to cut Huawei Technologies Co.s Ltd. and ZTE Corp., two of China’s biggest network equipment companies, out of the US market. The United States alleges that the two companies work at the behest of the Chinese government and that their equipment could be used to spy on Americans.
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 telecommunications makers that pose significant national security risks, sources from the telecoms industry and the administration said.
While the order is unlikely to name Huawei or ZTE, a source said it is expected that Commerce officials would interpret it as authorization to limit the spread of equipment made by the two companies. The sources said the text for the order has not been finalized.
The executive order would invoke the International Emergency Economic Powers Act, a law that gives the president the authority to regulate commerce in response to a national emergency that threatens the United States.
The issue has new urgency as US wireless carriers look for partners as they prepare to adopt next-generation 5G wireless networks.
The order follows the passage of a defense policy bill in August that barred the US government itself from using Huawei and ZTE equipment.
China Foreign Ministry spokeswoman Hua Chunying said she did not want to comment on the order as it had not been officially confirmed.
“It’s best to let facts speak for themselves when it comes to security problems,” Hua said.
“Some countries have, without any evidence, and making use of national security, tacitly assumed crimes to politicize, and even obstruct and restrict, normal technology exchange activities,” she added.
“This in reality is undoubtedly shutting oneself off, rather than being the door to openness, progress and fairness.”
Huawei and ZTE did not return requests for comment. Both in the past have denied allegations that their products are used to spy.
The White House also did not return a request for comment.
The Wall Street Journal first reported in early May that the order was under consideration, but it was never issued.
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