US government agencies have received the first version of regulations that prevent the use of Huawei products and services for projects financed by taxpayers.
The ban also applies to four other Chinese telecommunications companies, including ZTE, and was enshrined in the National Defense Authorization Act (NDAA) in 2018. The five companies are excluded on the grounds of national security.
The publication of the new rules is the first time that government agencies and contractors have seen how the ban affects them. Huawei has constantly denied allegations of misconduct and disputes the ban.
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US government ban
Huawei has been frozen from the US markets for equipment and telecommunications equipment for several years, but Washington has recently taken several steps to formalize the exclusion.
In addition to the NDAA, US suppliers are prohibited from doing business with Huawei. The ruling limited Huawei's access to components and meant that his handsets would no longer receive updates to the Android operating system from Google or access to his popular applications.
If the situation persisted, this would significantly reduce the attractiveness of Huawei devices in the West and seriously harm the company's ambition to become ' the world's largest smartphone manufacturer.
The US government had previously indicated that it could ease the ban to help US companies and start trade negotiations with China, but had not given details of how fairly the postponement would be.
It has now been confirmed that some suppliers can do business with Huawei – as long as there is no national security risk. It is unclear which product categories are considered safe, and it is worth pointing out that the ruling is still effective, meaning that it can be re-applied if trade negotiations stop.
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