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US law forces US companies to shun mainland China gear

A US new law banning any gear from Huawei Technologies is being implemented across government contractors, according to Bloomberg

17 June 2020 - 19:06

A US new law banning any gear from Huawei Technologies is being implemented across government contractors, according to Bloomberg.

Section 889, part B, of the National Defence Authorisation Act, will affect all companies who regard the federal government as a customer.



Every company that sells to the US government has to certify they don't have gear from Zhongxing Telecommunication Equipment Corporation, Hangzhou Hikvision Digital Technology Company, and various other Chinese surveillance companies.



According to Bloomberg News, outside of subcontractors, 100,000 companies provided US$598 billion in goods and services to the US government.



The current measures are being implemented as a result of the Trump administration's aim to cut off Chinese tech companies' access to American networks and components.



'Congress is deadly serious about eliminating Chinese technology from our critical infrastructure and related systems,' said former Capitol Hill staffer and Arent Fox partner David Hanke.



'As written, this statutory provision doesn't offer federal agencies all that much flexibility, so come August some companies that want to continue doing business with the government may find themselves in a tight spot.' said Mr Hanke.



Although ZTE has no market in the US, they have massive markets throughout the rest of the world. 'It's inevitable to find Huawei prevalent in systems across China, Europe, and Africa,' said Covington and Burling lawyer Samantha Clark.



'Some companies that might sell products that eventually get bought by the US Government's many links down the line don't even realize just how much they are involved in the US procurement chain.' said Mrs Clark.


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