THE Trump administration is considering issuing an executive order that would restrict some Chinese companies’ ability to sell telecommunications equipment in the United States, two industry officials said, an action likely aimed at Huawei Technologies Co. and ZTE Corp.

U.S. President Donald Trump’s administration has already targeted Huawei and ZTE, two of the world’s major telecommunications equipment manufacturers, with a number of recent actions to restrict their businesses in the United States based on national security concerns.

The news came as the Trump administration despatched a team to Beijing headed by Treasury Secretary Steve Mnuchin to hold talks over an ever-worsening economic relationship with China. The relationship has seen Trump threaten to impose tariffs on up to US$150 billion of Chinese imports, a move that could trigger a trade war between the world’s two largest economies.

U.S. lawmakers and the Trump administration have pressured U.S. companies not to sell Huawei or ZTE products. Earlier this year they pushed AT&T to drop a deal with Huawei to sell its smartphones in the United States.

A White House National Security Council spokesman said “While we have no comment on individual actions, protecting critical infrastructure, including the supply chains associated with such infrastructure, is a critical part of protecting America’s national security and public safety.”

Representatives of Shenzhen-based Huawei and ZTE could not be reached immediately for comment on the possible executive action, though both have denied allegations their products are used to spy.

A U.S. official familiar with ongoing administration talks about Huawei and ZTE said: “These two firms in particular are of concern because of the kind of equipment they produce and their overall market penetration.”

In April, U.S. Assistant Secretary for International Markets and Investment Heath Tarbert said the United States is considering ways to restrict sensitive Chinese investments in the United States by invoking an emergency powers law and bringing forward some security review reforms for corporate acquisitions.

Any executive action would come on the heels of a series of U.S. moves aimed at stopping or reducing access by Huawei and ZTE to the U.S. economy, including recent restrictions on U.S. suppliers of ZTE set by the Commerce Department.

The U.S. Federal Communications Commission in April proposed barring the use of funds from a government program to purchase equipment or services from companies that pose a security threat to U.S. communications networks.

The U.S. Department of Defense has already stopped selling mobile phones and modems made by Huawei and ZTE in stores on its military bases, citing potential security risks.

As of April 25, the Pentagon ordered that these and related products be removed from its stores worldwide, according to Pentagon spokesman Major Dave Eastburn. “These devices may pose an unacceptable risk to the department’s personnel, and mission,” Eastburn said.

A Huawei spokesman said the company’s products “meet the highest standards of security, privacy and engineering in every country we operate globally, including the United States” and added that “no government has ever asked us to compromise the security or integrity of any of our networks or devices.”

The U.S. Army and Air Force have more than 3,100 stores around the world, and also sell goods online to military personnel. The Navy Exchange has more than 300 stores worldwide. (SD-Agencies)