The proposed law was introduced on Wednesday shortly before the Wall Street Journal reported that United States authorities are in the "advanced" stages of a criminal probe that could result in an indictment of Chinese technology giant Huawei, the second-largest global smartphone maker and biggest producer of telecommunications equipment.
Establishing that it is USA policy to enforce denial orders banning the export of US parts and components to Chinese telecommunications companies that have violated USA export control laws or sanctions.
Huawei contended in a filing that, despite admitted wrongdoing on the part of employees, the actions did not constitute trade theft because the technology, a robotic device dubbed "tappy", was no secret.
"The probe is at an advanced stage and could lead to an indictment soon", the sources said.
It's no secret that Huawei and the US government don't see eye to eye. A jury in 2017 ruled that Huawei misappropriated T-Mobile's trade secrets and awarded $4.8 million to T-Mobile, according to FierceWireless.
The body was responding to calls to ban China's Huawei Technologies on national security grounds because the Americans say that they are using their technology to spy for the Chinese.More news: How Meghan Markle Reacted to Stranger Calling Her 'A Fat Lady'
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On Capitol Hill, Senator Tom Cotton and Representative Mike Gallagher, both Republicans, along with Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats, introduced the bills that would require the president to ban the export of USA components to any Chinese telecommunications company that violates US sanctions or export control laws.
Rep. Gallagher said: "Chinese telecom companies like Huawei pose an increasing threat to U.S. national security".
On Wednesday, a bipartisan group of US lawmakers introduced bills that would ban the sale of U.S. chips or other components to Huawei Technologies Co Ltd, ZTE Corp or other Chinese firms that violate U.S. sanctions or export control laws.
Huawei founder Ren Zhengfei, in a rare public appearance this week, said his company had never received a request from a government to transmit information in violation of any regulations. Huawei also maintains it was an isolated incident that involved two employees who acted inappropriately.
U.S. President Donald Trump's administration has been pushing European allies to block Huawei from telecom networks amid a wider dispute over trade with China.
"The document generally doesn't really talk about Huawei equipment or concerns about the equipment itself, nor does it show any real issues that have developed so far", Styles told reporters at SaskTel's offices in Regina at the time. US lawmakers have also banded together to ban chip sales to Huawei, ZTE, and other mainland companies to over sanctions violations.