US telecommunications regulators have declared Huawei and ZTE national security threats in the latest action by the US government against the Chinese tech giants.
The Federal Communications Commission (FCC) has also proposed forcing US customers to replace equipment previously purchased from the firms.
Huawei called the decision “profoundly mistaken”.
It said it was based on “innuendo, and mistaken assumptions”.
Huawei had made inroads in the US market, winning customers among rural telecommunications operators with relatively inexpensive network equipment.
But US officials have increasingly raised concerns about ties between Chinese tech firms and their government in Beijing.
In declaring Huawei and ZTE threats, the FCC on Friday cited the companies’ “close ties to the Chinese government and military apparatus” and “Chinese laws requiring them to assist with espionage”.
The agency ordered that money