President Donald Trump is expected to issue an executive that would effectively prohibit US companies from using any telecoms equipment manufactured by China’s Huawei.
The Financial Times reports that one person familiar with White House planning said Mr Trump would issue the order on Wednesday afternoon, just days after the US and China failed to reach a deal to end the trade war between the countries.
Officials in the Trump administration have been pushing him for months to sign the executive order amid rising alarm within US security and intelligence agencies about the vulnerability of Huawei-supplied wireless networks to Chinese spying.
So far Trump has been resisting, partly because he did not want to jeopardise a potential trade deal with China.
Huawei executive David Wang said the company was not aware of the order but that the US was not big market for the group.
The move against Huawei comes as Sino-US relations continue to deteriorate. Mr Trump upped the ante on trade by announcing on Friday that he would increase tariffs to 25 per cent on $200bn of Chinese products. Beijing retaliated this week by saying it would raise tariffs on $60bn of US imports.