This upcoming decision by the federal government stating that the Trump administration will discard companies using Huawei devices from federal contracts is causing concern among professionals in the United States, who are already very seriously affected by the coronavirus pandemic.
The Trump administration is in the process of finalizing regulations that should prevent the U.S. federal government from purchasing goods, products or services from any U.S. company or government body that uses components or products from five Chinese companies. The U.S. firms are not very happy with this decision and say they need more time to comply with the Chinese technology ban.
A rule to come into effect on August 13...
Telecommunications equipment manufacturers Huawei and ZTE, surveillance manufacturers Hikvision and Dahua, and radio transceiver designer Hytera are the five Chinese companies targeted by the ban.
The ban comes after the US Department of Defense first published a list of companies that would be under the control of the Chinese military, and more recently the US Federal Communications Commission (FCC) classified Huawei and ZTE as threats to national security.
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When this rule comes into effect on August 13, it will require every company selling goods or services to the U.S. government to prove and certify that it does not use any Middle Kingdom products. In order for this to be the case, a waiver will have to be obtained. And that will be no small task.
Government industry and professionals to request a deferral
It is tough on Chinese companies, but it is also tough on American professionals. While the National Defense Industrial Association and the Professional Services Council have formally asked the Trump administration to delay the implementation of the new regulations for a year, the White House does not intend to give up any ground.
Government industry, technology and professional services advocacy associations want the focus to be on economic recovery and the government to remain focused on the impact caused by Covid-19, and fear the consequences of the federal decision, which will affect even the largest companies in the country. In April, Amazon, for example, ordered 1,500 thermal imaging cameras to take the temperature of its employees from Dahua Technology, one of the world's leading companies in the field.
This new attempt to isolate Chinese companies on American soil could well be devastating. And it could further strain already strained Sino-American relations.
Source : Forbes