Huawei is already responding to reports that the Trump administration plans to ban U.S. government agencies from doing business with the company and other embattled Chinese technology firms.

While the administration has not made an announcement yet, the rule would be the latest move by the White House against Huawei. The Chinese tech giant was deemed to be a threat to U.S. national security in May and has since been a central component of the ongoing trade dispute between the U.S. and China.

In a statement Wednesday, Huawei said a ban "will do nothing to ensure the protection of U.S. telecom networks and systems and rather is trade barrier based on country-of-origin, invoking punitive action without any evidence of wrongdoing."

It appears that the prohibition will be implemented under the National Defense Administration Act (NDAA) of 2019, which was signed into law last year and mandated that the federal government cease business with Chinese technology firms that pose security risks. In addition to Huawei, this also included ZTE and Hikvision, among others.

CNBC first reported on the ban Wednesday, citing a spokesman for the White House's Office of Management and Budget, Jacob Wood, who said that the Trump administration "will fully comply with Congress on the implementation of the prohibition of Chinese telecom and video surveillance equipment, including Huawei equipment."

The ban is set to go into effect on August 13, way ahead of the August 2020 compliance deadline stated in the NDAA, according to CNBC.

"The news today was not unexpected as it is the continued promulgation of the rules laid out by the" NDAA, Huawei said, adding that the company will continue to challenge the constitutionality of the ban in federal court.

Share:
More In Business
Study: Over 58% of Hybrid Workers Are 'Coffee Badging'
With more employees being called back to the office, many workers are suddenly protesting by being in the office for as little time as possible. As the term suggests, coffee-badging means coming in for just enough time to have a cup of coffee, show your face, and swipe your badge.
Securitize: Join The Private Credit Boom
Cheddar News' Need2Know is brought to you by Securitize, which helps unlock broader access to alternative investments in private businesses, funds, and other alternative assets. The private credit boom is here and the Hamilton Lane Senior Credit Opportunities Fund has tripled in assets under management in just six months from November 2022 through April this year. Visit Securitize.io to learn more.
Stretching Your Dollar: Holiday Budgeting Tips for Kids
With Christmas only 10 days away, some kids may notice that there's a lot of spending going on this holiday season. Dr. Regine Muradian, licensed clinical psychologist, joined Cheddar News to provide tips on how to teach kids the value of gifts and money.
Load More