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U.S. bans federal purchases of equipment from 5 Chinese firms, including Huawei Updated: 2019-08-08 10:14:07 KST


The Trump administration has rolled out an interim rule that bans federal purchases of telecommunications equipment from five Chinese companies, including Huawei.
Reuters reported Wednesday that the measure is separate from Washington's enlisting of Huawei in its blacklist in May, accusing the company of espionage and stealing intellectual property.
It adds the latest move is in accordance to the National Defense Authorization Act that was passed last year, which restricts the use of federal budget to buy telecommunications equipment and video surveillance equipment from five Chinese firms, due to concerns over national security.
The interim measure will take effect from August 13th, and the final version will be announced after 60 days of accepting public comments.
Reuters also explained that a broader ban, which will apply to contracts with any private companies that use equipment from the targeted firms, will be put in place from August 2020.
In March, Huawei filed a lawsuit against the U.S. government over the defense policy bill, claiming the company is not controlled by the Chinese government, military or intelligence services.
Kim Hyo-sun, Arirang News.
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