This law contains a ban on the part of the government to cooperate with the two Chinese companies, and uses the equipment produced both, or the services.
The law was soon released after AT & T's decision to cancel cooperation with Huawei due to political pressure became news. The Republican lawmaker who introduced this law was Mike Conway.
The law is based on Conway's spying-related concerns, after receiving a report from the House of Intelligence Committee in 2012. This report marks Huawei and ZTE as national threats.
China's commercial technology is seen as a vehicle for the Chinese government to spy on US federal agencies, and disguise high-level national security threats.
Additionally, the law also explains that allowing Huawei, ZTE, and other related entities to access US government communications is capable of bringing a gap in China's gaze into all aspects of life in the country headed by Donald Trump.
The approval of the law will not prevent ZTE and Huawei from marketing unlimited smartphones and services in the United States.
However, a number of companies working with the United States government are not expected to continue or cooperate with either.