The US President has signed an executive order barring U.S. companies from using telecommunications equipment made by firms posing a national security risk.
The order has not named specific countries or companies.But Huawei is likely to be hit by the order amid concerns that its equipment could be used by Chinese intelligence services.
The US had already restricted federal agencies from using Huawei products and has encouraged allies to shun them with Australia and New Zealand have both blocked the use of Huawei gear in 5G networks.
China has threatened to retaliate against this US order which is seen as an attempt to restrict international trade.
Further,this order comes at a time when both China and the United States has imposed tariffs on goods as latest round of US-Chinese trade negotiations has ended without a deal.
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