Trump steps up a gear against Huawei and ZTE | Light Reading

Trump steps up a gear against Huawei and ZTE | Light Reading

The Trump administration is reportedly set to turn up the heat even further on China-based companies including Huawei Technologies and ZTE, if such a feat were possible.

According to a report from Reuters, there are plans afoot to finalize regulations that would bar the US government from buying goods and services from any company that uses products from a small but select list of five Chinese companies.

As well as Huawei and its domestic rival ZTE, the list is also said to include surveillance equipment provider Dahua, camera producer Hikvision, and two-way radios specialist Hytera Communications.

In future, any company that uses equipment or services in their day-to-day operations from these five companies will no longer be able to sell to the US government without obtaining a US government waiver.

Russ Vought, acting director of the White House Office of Management and Budget, told Reuters that the Trump administration “is keeping our government strong against nefarious networks like Huawei by fully implementing the ban on Federal procurement.”

The new rules are expected to take effect from August 13, 2020. Reuters cited figures from the Government Accountability Office that the government awards more than $500 billion in contracts on an annual basis.

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Recent US opposition to China-based manufacturers has been well documented, particularly with regard to the installation of Huawei and ZTE kit in 5G core networks. Other countries such as Australia, Taiwan and some East European states have followed the US lead in outlawing Chinese 5G equipment, although many have not.

Only recently, the US government tightened measures against Huawei to choke off supplies of components made with US equipment or design expertise. The growing raft of measures against Huawei have already led to predictions of its demise. In June, New Street Research said the Chinese vendor had “12 months left to live,” while analysts at Jefferies think it will run out of important components by March next year.

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Anne Morris, contributing editor, special to Light Reading

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