The US Wants Contract Ban for Companies With Ties to Huawei
The US government is coming up with a plan this week that bans the US government from purchasing goods or services from companies that use products from Huawei and four other Chinese companies.
That says a source in Washington to news agency Reuters. The policy could have significant implications for companies that sell products and services to the United States government. As a rule, they must be able to demonstrate that they do not use products from these companies.
Two of the companies mentioned, Hikvision and Dahua, sell the most video surveillance cameras worldwide. Huawei is known for its smartphones and network equipment. Smartphone maker ZTE and radio producer Hytera are also blacklisted, the source said.
Companies that do want to do business with the US government and these Chinese goods will need an exemption. According to the White House, getting an exception will not be easy.
The US agency that monitors government spending states in a statement to Reuters that the danger from foreign parties who want to infiltrate American systems, such as China, is excellent. A ban could protect the US government from “nefarious networks”.
The United States government spends $ 500 billion on contracts every year. The ban is reported to take effect on August 13.
It is still uncertain what the consequences are for existing contracts. The move could lead to further tensions in the trade relationship between China and the US.