New regulations took effect on Thursday barring the U.S. government from buying goods or services from any company that uses products from five Chinese companies including Huawei Technologies, Hikvision and Dahua, a U.S. official said.
The rule, which was prompted by a 2019 law, could have far-ranging implications for companies that sell goods and services to the U.S. government, since they will now need to certify they do not use products from Zhejiang Dahua Technology Co Ltd or Hangzhou Hikvision Digital Technology Co Ltd, even though both are among the top sellers of surveillance equipment and cameras worldwide.
The U.S. government annually awards more than US$500 billion in contracts, according to the Government Accountability Office. The Information Technology Industry Council noted Thursday the regulations were only published a month ago even though the law requiring the changes was passed in 2019.