New Bill Seeks To Ban Huawei From Any US Government Contracts

Mere days since Huawei lost a deal with AT&T to sell its flagship phones in the US due to security concerns, the Chinese tech company faces a new challenge to its US expansion plans. Congress has just proposed a bill that prohibits any government agency from working with Huawei (and another Chinese tech firm, ZTE). The bill, titled H. R. 4747: "Defending U.S. Government Communications Act," cites several intelligence reports that these telecommunications companies are "subject to state influence."

The bill references a 2011 report from the United States China Commission alleging Chinese governmental influence upon Huawei and other companies, a 2013 statement by General Michael Hayden of the CIA and NSA that the telecom company had shared sensitive information with the Chinese state and a 2015 FBI report that reiterated a concern that the Chinese government would be able to access US business communications via Huawei technology. In 2017, says the bill, ZTE Corporation pled guilty to illegally shipping US-origin items to Iran, a violation of the International Emergency Economic Powers Act. As a result of this and other assertions, the bill seeks to prohibit the use or procurement of any telecommunications equipment or services from the two companies as a "substantial or essential component of any system, or as critical technology as part of any system."

As noted by i">>TechCrunch, the bill still needs to be approved by the Committee on Oversight and Government Reform, then passed to the House floor for a vote. If the bill succeeds there, it will be sent along to the Senate, and eventually the President for a signature before it could become law.

US Congress

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