The US Commerce Department said on Wednesday it was adding Huawei Technologies and its 70 affiliates to its “Entity List”, which bans the company from acquiring components and technology from U.S. firms without government approval.
Huawei responded in a statement on Wednesday that restricting Huawei from doing business in the US will not make the country more secure or stronger but eventually harm the interests of US firms and consumers.
The US move adds another incendiary element to the US-China trade dispute just as Treasury Secretary Steven Mnuchin said he would visit China soon for more talks.
Commerce Secretary Wilbur Ross said in a statement that US President Trump backed the decision to “prevent American technology from being used by foreign owned entities in ways that potentially undermine US national security or foreign policy interests.”
Trump earlier in the day signed an executive order barring US companies from using telecommunications equipment made by firms deemed to pose a national security risk.
While the order did not specifically name any country or company, US officials have previously labeled Huawei a “threat” and lobbied allies not to use Huawei network equipment in next-generation 5G networks.