The United States is reportedly considering executive action to restrict some Chinese companies' ability to sell telecommunications equipment within America.
The Wall Street Journal reports that the move is likely aimed at Huawei and ZTE, which have been accused of spying on Americans through their products.
The Pentagon has also stopped selling mobile phones and modems made by the two Chinese firms in stores on U.S. military bases, citing potential security risks.
Huawei responded by saying its products meet the highest standards of security, privacy and engineering in every country it sells to, including the United States.
ZTE is yet to comment on the issue.