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US President Donald Trump is mulling an executive order for the new year that would ban US companies from using telecom equipment from Huawei as well as ZTE, Reuters reported, citing three sources familiar with the situation.

If issued, the executive order would force the U.S. Commerce Department to prohibit U.S. firms from buying equipment made by Chinese telecommunications suppliers on national security grounds. Smaller, rural US operators now use a significant amount of ZTE and Huawei technology.

The U.S. has accused both firms of working for the Chinese government, saying some of the equipment the companies manufacture may have been used to spy on Americans.

While its Foreign Ministry spokesman Hua Chunying said she did not want to comment on the order directly as it had not yet been officially confirmed, she noted yesterday that countries should produce facts to justify their security concerns.

Huawei, the world's largest producer of telecommunications equipment, is facing intense scrutiny in the West over its ties to the Chinese government.

Defence Secretary Gavin Williamson
Defence Secretary Gavin Williamson said the UK would look to its allies

A new United States government move targeting Apple rival Huawei and fellow Chinese telecom company ZTE may come as early as the beginning of 2019.

"This in reality is undoubtedly shutting oneself off, rather than being the door to openness, progress and fairness".

The RWA represents carriers with fewer than 100,000 subscribers. In some recent filings, smaller carriers indicate ZTE and Huawei equipment generally runs about twenty-five percent of the cost of equipment from manufacturers like Ericsson.

Alongside its smartphone business, Huawei, China's largest company in terms of sales, develops equipment for telecoms infrastructure, such as antennae and transmission gear. The organisation has said it would cost United States dollars 800 million to USD 1 billion for all RWA members to replace their Huawei and ZTE equipment, Bennet said. It's unclear whether the order would require existing telecom equipment to be replaced with hardware from different companies. Another US ally, Japan, is also reportedly considering similar restrictions on government purchases of Huawei and ZTE equipment.

Sagebrush has noted that Huawei products are significantly cheaper. The FCC estimates 25 percent of rural carriers in the US now have ZTE or Huawei equipment being used in their networks.