US to bar China’s Huawei from federal government contracts

Company to continue legal action

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A Huawei store in Beijing.

A Huawei store in Beijing. (By Associated Press)

TAIPEI (Taiwan News) – The United States on Wednesday (August 7) issued the rule restricting the use of products from Huawei Technologies by government agencies as the next logical step in a process flowing from last year’s defense bill, The New York Times reported.

Government departments will be banned from purchasing equipment and services from several Chinese companies, including telecom giants Huawei and ZTE and surveillance camera manufacturer Hikvision.

Huawei said it was not surprised since the move was a result of the defense bill and that it would continue to take legal action against the Trump administration measures, which it described as sanctions based on no evidence.

While the new rule goes into effect on August 13, it was only one element of a process that has often changed directions, The New York Times reported. Last June, following the G20 summit in Japan, President Donald Trump said U.S. tech companies could sell some technology to Huawei, but since then, more disputes between the two countries have emerged.

Trade talks have broken down, a currency war has broken out, and China has struck back at U.S. farm products, worsening the tone of the interaction between Washington and Beijing.