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US to demand contractors don't use Huawei products

(Image credit: Karlis Dambrans / Shutterstock)

The US is set to continue its campaign against Huawei by finalising new regulations that prevent the American government from procuring goods and services from firms that use the company’s products.

Huawei is one of five Chinese firms that have been added to the list, which includes manufacturers of two-way radios and surveillance equipment.

The measures are justified on national security grounds but could also see businesses adopt more US technologies and loosen Chinese influence in the sector.

Huawei US ban

In effect, companies wanting to bid for government contracts will have to prove they are compliant with the regulations if they are to be successful. It is estimated that the total value of US government contracts is worth half a trillion dollars each year.

According to Reuters, the Trump administration will finalise the regulations this week.

The US ban forms part of a wider assault on Huawei in recent years. Although Huawei has effectively been frozen out of the US market to date, it does supply a number of smaller, rural operators who rely on the firm’s relatively inexpensive gear.

Washington has approved a funding package for these carriers to strip out this equipment and replace it with alternatives from the likes of Ericsson and Nokia.

However it is sanctions that limit Huawei’s access to US technologies and components that have proved most damaging to the company’s ambitions. Huawei has persistently denied any allegations of wrongdoing and has previously said these measures were targeted, malicious, and threatened the future of its business.

Via Reuters