Huawei is one of China's largest tech companies and the second-largest cellphone maker worldwide — ahead of the United States' Apple, but behind the Korean company Samsung.
Commerce Secretary Wilbur Ross said in a statement that the move will "prevent American technology from being used by foreign owned entities in ways that potentially undermine US national security or foreign policy interests."
"President Trump is acting once again to protect US national security. This Executive Order addresses the threat posed by foreign adversaries to the nation's information and communications technology and services supply chain," Ross said earlier in the day. "Under President Trump's leadership, Americans will be able to trust that our data and infrastructure are secure."
Specifically, the companies were added to the Bureau of Industry and Security's (BIS) Entity List, a dossier of foreign companies and persons with various licensing regulations applied to US companies that wish to sell them products.
Earlier Wednesday, US President Donald Trump signed an executive order directing the Commerce Department and other relevant US agencies to draw up a plan for barring US companies from using telecommunications equipment made by foreign manufacturers if they're deemed a "national security risk."