US government structures were deprived of the opportunity to purchase equipment from Huawei and ZTE

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US government structures were deprived of the opportunity to purchase equipment from Huawei and ZTE
August 14
09:00 2019

According to the data provided by Federal Register, a ban for government agencies and companies to trade with Chinese technology firms comes into force from the thirteenth of this month. We are talking about purchases from Huawei and ZTE, as well as from their subsidiaries and structures.

The ban is allowed to be violated once in a two-year period. However, in this case, the agency will have to prove the validity of the purchase in Congress.

Due to suspicions of espionage in favor of the Chinese government, Huawei has been blacklisted. In May, President Trump issued a decree, which addressed the Chinese company. Huawei was regarded as a structure, interaction with which could be carried out only with a special license issued by the Ministry of Trade. Without it, American companies cannot trade components or technology with Huawei.

Along with adding to the “blacklist”, Huawei was granted a grace period regarding this restriction. Over a 90-day period, the Chinese company can purchase components and services to ensure the operation of its devices. This deferral ceased to operate yesterday, on August 13.

Analysts believe that the current restrictions that affected not only Huawei, but also ZTE are an additional direction, which the States use in the trade war with China.

The American president said that the ban on working with Huawei in any form was a response to the Chinese sanctions, which prohibited Chinese companies from buying agricultural equipment in the United States.


The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company
UFT Group

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