Huawei, the third-largest maker of smartphones, says it is owned by its employees and rejects claims that it is controlled by the communist government or China's military.
Depending on how the Obama administration interprets the law, Baker said it also could cause problems for the U.S. with the World Trade Organization, whose members include U.S. allies like Germany and Britain that might rely on Chinese technology to build computers or handsets.
But in the end, Baker says it could make the U.S. government safer and wiser.
"We do have to worry about buying equipment from companies that may not have our best interests at heart," he said.
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