The ban on United States companies selling parts to Huawei will take effect on Friday, the US commerce secretary has said.
Wilbur Ross told on Thursday that the new regulations will bar Huawei from acquiring components and technology from US firms without government approval.
Huawei Technologies Co. Ltd. and 70 affiliates are being added to the US Commerce Department's "entity list". The move makes it difficult - if not impossible - for the firm to sell certain products, due to reliance on US suppliers.
Ross said in a statement on Wednesday that President Donald Trump sought to "prevent American technology from being used by foreign-owned entities in ways that potentially undermine US national security or foreign policy interests".
The dramatic move comes as the Trump administration has aggressively lobbied other countries not to use Huawei equipment in next-generation 5G networks. And it comes just days after the Trump administration imposed new tariffs on Chinese goods amid an escalating trade war.
US officials have long feared the Chinese government could use Huawei’s equipment to spy on Americans.
Blacklisting Huawei is likely to have ramifications beyond the company itself: Not only might it disrupt Huawei’s business, but it could also hurt its US suppliers.
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