President Trump signed an executive order Wednesday that allows the U.S. to ban telecommunications network gear and services from foreign adversaries, taking aim at Chinese telecom companies Huawei Technologies Co. and ZTE Corp. and dialing up security and trade tensions.
The order doesn’t list any countries or companies by name. Instead, it gives the Commerce Secretary the authority to ban the import of gear or services from companies that have close ties to foreign governments and could use their equipment to monitor or disrupt U.S. telecommunications or other infrastructure.
U.S. national-security officials have contended that Chinese companies pose just such a threat, since under China’s Communist Party rule they are obliged to abide by Beijing’s orders.