Citing “national security grounds,” the Trump Administration is said to be working to block Chinese companies from supplying U.S. carriers with 5G equipment.
Several media outlets say President Trump is set to direct the Commerce Department to enact the new order – on that will be a major blow to Huawei and ZTE.
If approved by Congress, the new measure would directly impact cell tower supplies, not consumer-level smartphones and tablets. According to Reuters, this most recently proposed Chinese tech ban has been ‘under consideration’ for nearly a full year.
What’s more, it follows a wider pattern of similar behavior from the U.S. government. In a defense bill passed earlier this year, lawmakers barred contractors from using telecom equipment with parts supplied by certain Chinese companies.
Interestingly, this move comes at a time when American wireless carriers are just starting a nationwide 5G rollout. However, despite the looming embargo, experts say it won’t be a major impact.