US President Donald Trump has barred American companies from using foreign-made telecom equipment posing a national security threat.
Mr Trump has signed an executive order in this regard.
The order did not directly name any country or company, but officials have previously termed Chinese giant Huawei a threat and asked allies not to buy equipment for the next-generation 5G networks from the world’s largest provider of telecommunications.
The move comes amid an escalating trade war between US and China.
Huawei has termed the executive order as unreasonable, saying that the US is infringing upon the firm’s rights.
The telecom giant, in a statement, said that restricting Huawei from doing business in the US will not make the country more secure or strong. It added that the order will only serve to limit the US to inferior and more expensive alternatives.