The arrests came amid ongoing efforts by the U.S. and its allies to limit the use of technology manufactured by firms with ties to Beijing over espionage concerns.

The dilemma presents the latest — and perhaps fiercest — technological showdown between Washington and Beijing to date.

When the House and Senate sit down next week to iron out differences in an annual must-pass defense bill, the fate of Chinese telecom ZTE may be a key wedge issue.

“Ripping out and replacing” a raft of Chinese-made telecom gear won’t be easy, a group of American companies protested to the Federal Communication Commission (FCC). A collective of trade groups representing smaller American service providers joined with prominent Chinese telecom Huawei in slamming the FCC’s proposal to ban American telecoms from using federal subsidies to purchase Chinese-made equipment.

On Monday, the Trump administration moved to block a large Chinese telecommunications company from entering the U.S. market, recommending that its application be rejected on national security grounds.

Federal Communications Commission Chairman Ajit Pai wants to bar U.S. telecommunications providers from buying equipment and services he says could give foreign-government hackers a foothold into the supply chain.