The United States will impose a ban on the conclusion of government contracts with anyone who uses technology from companies from the black list
The Trump administration plans to finalize rules and regulations this week that would prohibit the US government from buying goods or services from any supplier if it uses products from any of five Chinese tech companies, including Huawei, Hikvision and Dahua, a White House spokesman said..
The restrictive rule that was mandated by law in 2019 could have far-reaching adverse effects on companies selling goods and services to the US government as they now need to confirm that they are not using Dahua or Hikvision components and products, which, for example, are some of the largest suppliers of surveillance equipment and cameras worldwide.
The same goes for two-way radios from Hytera Communications Corp and telecommunications equipment or mobile devices such as smartphones from Huawei Technologies or ZTE Corp..
Any company that uses equipment or services in its day to day operations from these five Chinese companies will no longer be able to sell it to the US government without first obtaining permission from that same government..
Confrontational actions of the White House unfold amid growing tensions between countries over allegations of the origin of the new coronavirus, as well as withholding information about its spread, China’s actions in the former British colony in Hong Kong and an almost two-year trade war.
«The danger our country faces from foreign rivals such as China seeking to infiltrate our systems is great», – said Russell Vought, Acting Director of the Office of Management and Budget (White House Office of Management and Budget) in a Reuters post.
«Trump Administration Supports Our Government Against Wicked Networks Like Huawei By Implementing A Total Ban on Federal Procurement».
Federal Procurement Council Rule Going Into August 13th.
While there has previously been uncertainty in the customer community regarding the implementation and application of this rule, given its potential impact on contractors, the White House has made it clear that it will not be delayed and no exceptions will be difficult to achieve..
While it is unclear for sure if this will affect current contracts, it may complicate contracting in the future..
Amazon Cloud is the primary contractor for the U.S. intelligence community, and is battling Microsoft Corp for an approximately $ 10 billion Pentagon cloud contract..
A White House official said the administration will require government agencies to conducting a national security threat analysis before any exceptions can be made, which Congress does not explicitly require in the bylaws.
The official added that the rule is aimed not only at prohibiting government agencies from using the products of Huawei and other named Chinese companies, but is an attempt to limit their influence, saying that it essentially gives companies a choice between doing business with the US government or with Chinese companies..
Last year, the United States added Huawei, Hikvision, and other companies to its economic blacklist, barring those businesses from purchasing components and equipment from US companies without US government approval..
On June 30, the Federal Communications Commission officially announced that Huawei and ZTE Corp. pose a threat to US national security. The ruling prohibits American businesses from using the $ 8.3 billion government fund to purchase equipment from these companies..