US agencies banned from doing business with Huawei and other Chinese tech companies, as Trump administration cites security concerns
- Crackdown by the White House Office of Management and Budget also targets ZTE, Hytera, Hikvision and Dahua
- US government fears the companies could divulge US trade secrets and other information to Beijing
The Trump administration announced on Wednesday a ban on US federal agencies buying equipment and services from Chinese companies such as telecoms giant Huawei Technologies, citing national security concerns.
The White House Office of Management and Budget (OMB) said that federal purchases of telecommunications equipment, video surveillance gear and other products from Huawei, its rival ZTE, radio systems provider Hytera, camera maker Hangzhou Hikvision Digital Technology and video surveillance products maker Dahua Technology would be prohibited out of fear the companies could divulge US trade secrets and other information to the Chinese government.
The new rule, which will take effect next Tuesday, is a significant step in the US government’s ongoing effort to crack down on Chinese technology it regards as a potential national security threat.
The announcement comes a year before Congress’ mandated deadline of August 2020 for all federal contractors to stop doing business with these companies.
Jacob Wood, a spokesman for the Office of Management and Budget, said in a statement on Wednesday the OMB “has a strong commitment to defending our nation from foreign adversaries”.