US unveils plan to shield telecoms networks from ‘foreign adversaries’ – but no explicit mention of Huawei or ZTE

Proposal follows Trump executive order in May widely seen as targeting Chinese firms such as Huawei and ZTE

Decisions on whether to bar transactions with companies posing national security threats will be made on case-by-case basis, says Commerce Secretary Wilbur Ross

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US Commerce Secretary Wilbur Ross speaking during the Milken Institute Global Conference in Beverly Hills, California, in April. Photo: Bloomberg

Published: 1:13am, 27 Nov 2019Updated: 8:12pm, 27 Nov 2019

The United States set out a procedure on Tuesday to protect its telecommunications networks and their supply chains from national security threats, saying it would consider whether to bar transactions on a case-by-case basis.

US President Donald Trump issued an executive order in May declaring a national emergency and barring US companies from using telecommunications equipment made by firms posing national security risks. The order was widely seen as aimed at Chinese firms such as telecoms equipment market leader Huawei and ZTE.

The Trump administration added Huawei to its trade blacklist in May, citing national security concerns, but has issued licences to allow some US companies to continue to do business with Huawei, the world’s second-largest smartphone maker and a leader in next-generation 5G network technology.

The Commerce Department said on Tuesday that Secretary Wilbur Ross had chosen to adopt a “case-by-case, fact-specific approach to determine which transactions must be prohibited, or which can be mitigated”.

The outlined approach, in a proposed rule, does not mention either Huawei or ZTE.