Silicon Valley and other areas of the United States that work in the mobile communications industry could feel the impact of a U.S. crackdown on Chinese cell phone maker Huawei.
According to The Wall Street Journal, companies in seven states manufacture parts for Huawei and ship them to China. But with President Donald Trump invoking a national emergency this week to protect U.S. communications networks, anything that goes to or from Huawei will be scrutinized and heavily regulated.
U.S. officials believe the Chinese government uses consumer companies such as Huawei to spy on its adversaries.
Under the new rules, manufacturers that supply Huawei with parts will need to apply for a license to continue working with the company. California has the largest number of Huawei suppliers with eight.
Huawei claims it does not work with the Chinese government to spy, and its chairman even offered this week to sign "no spy" agreements with countries.
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