U.S. President Donald Trump is getting set to sign an executive order that could pave the way for a ban on U.S. companies doing business with Chinese tech giant Huawei.
That's according to three Reuters sources: U.S. officials who say that Trump is expected to sign an executive order this week, stopping U.S. firms from using telecoms gear from companies that pose a national security risk.
The sources said the order won't name specific companies but that it has been under consideration for more than year.
The executive order would invoke the International Emergency Economic Powers Act giving the president authority to regulate commerce as a response to a national emergency.
And it would direct the Commerce Department to draw up a plan for enforcement along with other agencies.
Beijing responded sharply on Wednesday (May 15) China's foreign ministry saying the U.S. has been using national security as a pretext.. to smear Chinese companies.
If it happens the telecoms ban would come at a touchy time for U.S. - China relations.
As tariff tensions spike once again in a battle over what U.S. officials call China's unfair trade practices.
(SOUNDBITE)(English) U.S. PRESIDENT, DONALD TRUMP SAYING:
"We're having a little squabble with China."
The Trump administration believes gear made by Huawei could be used to spy for Beijing.
The U.S. has also been pushing its allies not to use Huawei's gear in 5G networks calling it quote "untrustworthy".
But Washington's never publicly revealed any evidence for the claims.
And Huawei, now the world's-third biggest smartphone maker, has consistently denied the allegations.