The aftermath of the US-China trade war continues. Trending in the latest tech news, the United States government administration has just signed a bill to ban the use of technology by Huawei and ZTE. President Donald Trump signed the document which will forbid all government agencies, contractors and employees from using the Chinese-manufactured technology.
The ban was signed as part of the law under the Defense Authorization Act. It will be brought into effect over the course of the next two years. The signed bill forms a part of the ban on equipment and devices that are used to view and route user data. While government contractors have to get rid of devices that utilize user data, they can still use the ones that don’t.
Why were Huawei and ZTE Banned by the Trump Administration?
Due to the new legislation, Huawei and ZTE will undoubtedly lose clients but things could have been much worse for the latter. Currently, ZTE relies on American chipmakers for parts. However, the Senate recently voted to reinstate a ban that would continue preventing ZTE from working with its US counterparts. The tech giant was saved from a close brush with a death sentence, as the Senate eventually gave up on its efforts to restore the ban and settled on a compromise.
The American government had been seeing the two Chinese companies as a security threat for a while now. Earlier, both companies had failed a year-long probe wherein they were asked to explain their links to the Chinese government. Subsequently, the Pentagon and the Democratic National Committee (DNC) banned the use of phones manufactured by Huawei and ZTE. They cited security concerns as the main reason, especially after the multi-million dollar lawsuit DNC filed against WikiLeaks and the Russian government during the 2016 presidential election.
What does the Defense Bill Signing Mean?
According to the bill signed under the Defense Authorization Act, the US government has taken significant strides in the escalating US- China war. It has banned Huawei and ZTE technology that is used to view or route user data. It also covers the ‘substantial or essential component of any system.’ Although there isn’t an outright ban on the usage of products manufactured by the two Chinese conglomerates, any businesses or individuals wishing to do business with the government will have to adhere to the conditions of the ban.
In light of this recent tech news, the Defense Authorization Act is authorized to allocate funding to the companies who will replace the banned equipment. The news of the ban comes close on the heels of the deal ZTE signed with the Commerce Department. It had previously worked to lift a denial order that would prevent it from working alongside American suppliers.
Meanwhile, Huawei has issued a statement condemning the US governments’ actions, calling the ‘random addition’ misguided, ineffective and unconstitutional. Apart from tech companies, the bill also cites the prohibition of video surveillance goods. It seems that the list of manufacturers being impacted by the escalating US-China trade war is only growing longer.
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