According to Texas US representative Conaway's bill, he acknowledges that the technology coming from the country poses a threat to national security, and that use of this equipment "would be inviting Chinese surveillance into all aspects of our lives".
The US government has also blocked a string of Chinese acquisitions over national security concerns, including Ant Financial's proposed purchase of US money transfer firm MoneyGram.
Nearly all phones and electronics - including most "American" or "European" phones - are made in China.
Huawei has been trying to gain traction in the US smartphone market for years, but it looks like it still has a enormous hill to climb before it can even get into conversations about competing with companies like Samsung or HTC in that market.
In recent days, Huawei's plan to offer its new Mate 10 through AT&T was dropped, officially as part of a mutual decision to instead sell the device unlocked.
Only a week earlier at the CES trade show in Las Vegas, Richard Yu, CEO of Huawei's consumer business group, took the stage expected to announce AT&T as the US carrier partner for Huawei's flagship Mate 10 Pro smartphone that is being released in the United States. Worries over potential Chinese government spying via China-based companies are nothing new, but officials have been, both officially and unofficially, increasingly vocal about these potential issues.
Today's report suggests that AT&T walked away from Huawei under pressure from government regulators, who were most likely lobbied by the same members of Congress involved in the investigation. Even the use of Huawei handsets by AT&T's Cricket subsidiary is believed to be not acceptable.
One of the ties that members of the House and Senate want to be cut by AT&T is a collaboration the carrier has with Huawei related to the standards for the next generation high-speed 5G network, said the sources. According to two congressional aides, USA lawmakers are taking steps to hamper any plans by China Mobile Ltd.to extend their telecom operations to the US, over similar fears of over national security.
In 2011, the two companies were the subject of a report from the House of Representative's Permanent Select Committee on Intelligence, which recommended that the U.S. government be prohibited from buying Huawei and ZTE products, as well as continued vigilance, investigation, and legislation to address the concerns. China Mobile has wanted to do business in the US since at 2011, but some lawmakers insist their introduction risks damaging national security as well, Reuters reported.