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Read more informationU.S. seeks input on licensing rules for information tech security
Over the objections of US business groups, the US Commerce Department authorized a regulation released by then-President Donald Trump in January to take effect on Monday.
The Commerce Department released provisional final rules aimed at resolving information and communications technology supply chain issues posed by China, Russia, Iran, North Korea, Cuba, and Venezuela just days before Trump left office in January.
Commerce must follow licensing or other pre-clearance procedures by May 19, according to the regulation.
The law, according to the US Chamber of Commerce and other business organisations, gives the US government "nearly unrestricted authority to interfere in practically any commercial transaction involving technology between US companies and their foreign counterparts, with little to no due process."
The Commerce Department announced last week that it had issued subpoenas on many Chinese companies that provide ICTS services in the US to see if they posed a national security danger.