U.S. President Trump signed a state of emergency executive order Wednesday banning U.S. companies from using telecommunications equipment produced by companies that pose a risk to national security in preparation for a ban on U.S. businesses from doing business with Huawei in China.
The executive order invokes the International Emergency Economic Powers Act, which authorizes the President to exercise commercial control when the country is threatened by a state of emergency. The executive order requires the Ministry of Commerce, in conjunction with other government agencies, to draw up an implementation plan within 150 days.
The administrative decree has been in the making for more than a year. U.S. Commerce Secretary Ross said the goal was to protect the supply chain from "foreign competitors threatening the country's information, communications technology and service supply chain".
"Under President Trump's leadership, the American people will be assured that our data and infrastructure are secure," he said.
The promulgation of this administrative decree coincides with a delicate moment in Sino-US relations.
The United States has been actively promoting other countries to stop using Huawei equipment to build the next generation 5G network, calling it "untrustworthy". Trump signed a bill in August prohibiting the U.S. government from using Huawei and ZTE (000063.SZ) equipment.
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