Amid failed trade negotiations between Washington and Beijing, U.S. President Donald Trump signed an executive order Wednesday local time, barring U.S. companies from using foreign-made telecoms equipment that could pose a threat to national security.
The order is aimed at protecting America from what it calls "foreign adversaries who are actively and increasingly creating and exploiting vulnerabilities in information and telecommunications technology infrastructure and services in the United States."
It bans transactions “posing an unacceptable risk to the national security”, but did not directly point to any nation.
However, shortly after it was issued, the Commerce Department added Huawei to its so-called "Entity List" of 70 affiliates, meaning the Chinese tech giant would require U.S. government approval in order to purchase American technology.
U.S. Commerce Secretary Wilbur Ross defended Trump's order, saying the move will prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests.
Officials from the Commerce Department said they will write the rules for reviewing transactions over the next 150 days to back up the order.
Huawei responded to the move by saying restricting Huawei from doing business will not make the U.S. more secure or stronger.
The move comes as the Trump administration has been lobbying other countries not to use Huawei's 5G equipment amid U.S.-China trade tensions.
Huawei's finance chief Meng Wanzhou has also been detained in Canada since December, accused of breaching U.S. sanctions on Iran.
Cha Sang-mi, Arirang News.