In May 2019, President Donald Trump signed an executive order aimed at restricting Chinese telecommunications companies—most notably Huawei—from selling equipment in the United States. The move was designed to protect U.S. wireless networks and computer systems from potential security threats posed by foreign adversaries.

The Scope of the Executive Order

The order prohibits the purchase or use of communications technology produced by entities controlled by a foreign adversary if they pose an undue risk of sabotage or could have catastrophic effects on U.S. infrastructure. The Commerce Department was given 150 days to establish rules identifying specific countries or companies as threats—China and Huawei were widely expected to be named.

National Security Concerns

Trump's executive order cited growing concerns over cybersecurity vulnerabilities in U.S. communications networks.

“Foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services,” Trump stated, emphasizing the risks of economic and industrial espionage.

Impact on U.S.-China Relations

The timing of the order was significant, as the U.S. and China were embroiled in a trade war that had already shaken global markets. The directive further strained diplomatic relations, especially as the Justice Department pursued the extradition of a Huawei executive from Canada over alleged violations of sanctions on Iran.

The Future of Huawei in the U.S.

With Huawei facing increasing restrictions, the executive order marked a turning point in U.S. technology policy. The move signaled a broader effort to limit foreign influence in 5G infrastructure, reinforcing concerns about national security and data privacy.