WASHINGTON – US lawmakers have introduced legislation that could cut Huawei Technologies and other foreign companies from the world’s largest financial system, in the latest attempt to curb China’s technological ambitions. 

The Senate Bill, whose sponsors include Senate Majority Leader Chuck Schumer, a New York Democrat, would ban United States companies from participating in significant transactions with foreign companies that produce 5G technology and engage in industrial espionage. If Huawei were so designated, it would effectively halt its access to US banks. 

“We cannot allow Huawei and the Chinese Communist Party to have access to Americans’ personal data and our country’s most sensitive defence systems,” said Senator Tom Cotton, an Arkansas Republican who also backed the Bill. “We must address the dire threat these Chinese companies pose to our national security.” 

The legislation comes amid broad support in Washington for finding ways to curb China’s influence, and Huawei in particular. In November, the Federal Communications Commission barred Huawei and other telecommunications companies including ZTE from selling electronics in the US on grounds that they posed risks to data security.

Beijing opposed Washington’s distortion of the concept of national security, Chinese Foreign Ministry spokesman Wang Wenbin said on Wednesday at a regular press briefing in response to a question about the Bill.

“The US is ruining international rules,” he said. “China will take measures to uphold the legitimate and legal rights and interests of Chinese companies.”

US lawmakers are also seeking to ban Chinese-owned video app TikTok, which the Federal Bureau of Investigation has warned could control millions of users’ software, steal information, launch hacking attacks or conduct influence operations.

The legislation would block all transactions from any social media company in or under the influence of China and Russia, Republican Senator Marco Rubio’s office said, adding that a companion Bill in the US House of Representatives was sponsored by Republican congressman Mike Gallagher and Democrat Raja Krishnamoorthi.

China has denounced measures by the US to restrict the capacity of its technology sector, including sweeping sanctions that limit its access to advanced chipmaking equipment. BLOOMBERG, REUTERS