Escalating the bruising trade war with China, President Donald Trump has signed an executive order barring American companies from installing the foreign-made telecom equipment deemed a national security threat, a move apparently aimed at banning Chinese giant Huawei from U.S networks.
The decision taken on Wednesday risks escalating tensions with China as the world's two largest economies clash over whether Huawei the world's largest provider of telecommunications equipment poses a spying risk to Western infrastructure networks.
Under the order that will take effect in the coming days, Huawei will need a U.S government license to buy American technology.
Soon after the executive order - "Securing the Information and Communications Technology and Services Supply Chain" - was signed, the Bureau of Industry and Security (BIS) of the Department of Commerce announced that it will be adding Huawei Technologies Co. Ltd and its affiliates to its Entity List.
The Department of Commerce alleged that Huawei was engaged in activities that are contrary to US national security or foreign policy interest. As a result, sale or transfer of American technology to a company or person on the Entity List requires a license issued by the BIS, and a license may be denied if the sale or transfer would harm US national security or foreign policy interests.
The listing will be effective when published in the Federal Register.
(with news agency inputs)