US President Donald Trump is expected to sign an executive order this week that would stop US companies from using technology deemed to be a "national security risk".
Estimates suggest around a fifth of rural carriers in the USA use either equipment made by Huawei or, another Chinese company, ZTE, although many of their larger telecoms companies have already cut ties.
The official, who was granted anonymity to discuss a sensitive issue, said on Tuesday night that the order was not meant to single out any country or company. The order will direct the Commerce Department, working with other government agencies, to draw up a plan for enforcement, the sources said.
In January, U.S. prosecutors charged two Huawei units in Washington state saying they conspired to steal T-Mobile US Inc trade secrets, and also charged Huawei and its chief financial officer with bank and wire fraud on allegations that the company violated sanctions against Iran.
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"Despite the fact Huawei has its headquarters in China, we are actually a globally operating company", he said. In December, Huawei CFO Wanzhou Meng was arrested in Canada on suspicion of violating USA sanctions concerning Iran.
Ms May fired defence minister Gavin Williamson - one of the cabinet's big critics of China - earlier this month over a leak alleging that her government will allow Huawei to play a limited 5G role.
It follows concerns from some countries that China could use products made by the telecoms firm for surveillance.
"There are no Chinese laws requiring companies to collect intelligence from a foreign government or implant back doors for the government".
Last week, the U.S. Federal Communications Commission barred China Mobile Ltd. from the U.S. market over national security concerns and said it was opening a review of other Chinese companies. "No spying, no backdoors", said Liang.