President Donald Trump is expected to sign an executive order as early as this week that could pave the way for banning US companies from using equipment from Chinese telecom giant Huawei, Reuters reported Tuesday.
The order, which has been under consideration for more than a year, won’t name specific companies or countries, the news agency reported, citing unidentified sources described as familiar with the plan. The order still could be delayed further, they say.
The order is expected to invoke the International Emergency Economic Powers Act, a federal law that authorizes the president to regulate commerce after declaring a national emergency in response to an extraordinary threat to the US.
Huawei is the world’s second-largest phone manufacturer by volume, but it has struggled to make a dent in the US, partly because of concerns expressed by the government, including the, the and House Intelligence Committee.
The core issue with Huawei has been concerns over its coziness with the Chinese government and fears that its equipment could be used to spy on other countries and companies. The CIA has reportedly warned intelligence officials that Huawei receives funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network.
In January, the US Justice Departmentpertaining to the theft of intellectual property, obstruction of justice and fraud related to its alleged evasion of US sanctions against Iran. One 10-count indictment accuses Huawei of stealing trade secrets from US carrier T-Mobile beginning in 2012.
The White House and Huawei didn’t immediately respond to requests for comment.