The United States will continue its campaign against Huawei by finalizing new regulations that prevent the US government from purchasing goods and services from companies that use the company's products. Huawei is one of five Chinese companies that have been added to the list, which includes makers of two-way radios and surveillance equipment. The measures are justified on national security grounds, but could also see companies adopt more American technology and loosen Chinese influence in the sector.
Huawei ban in the United States
In fact, companies wishing to bid for public contracts will have to demonstrate that they comply with regulations if they want to be successful. The total value of US government contracts is estimated to be worth half a trillion dollars each year. According to Reuters, the Trump administration will finalize the deal this week. The US ban is part of a larger attack on Huawei in recent years. Although Huawei has been frozen out of the US market to date, it provides a number of smaller rural operators that rely on the company's relatively cheap equipment. Washington approved a financing plan for these operators to retire this equipment and replace it with alternatives such as Ericsson and Nokia. However, it is the sanctions limiting Huawei's access to American technologies and components that have proven most detrimental to the company's ambitions. Huawei has consistently denied any allegations of wrongdoing and has previously said the measures were targeted, malicious and threatened the future of its business. Via Reuters