US finalising federal contract ban for companies that use Huawei, others

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The Trump administration plans to finalise regulations this week that will bar the U.S. government from buying goods or services from any company ...

WASHINGTON: The Trump administration plans to finalize regulations this week that will bar the US government from buying goods or services from any company that uses products from five Chinese companies including Huawei, Hikvision and Dahua, a US official said.

The White House action comes amid increasing US-China tension over the handling of the novel coronavirus, China's actions in the former British colony of Hong Kong and a nearly two-year trade war. The US government annually awards more than US$500 billion in contracts, according to the Government Accountability Office.While there was previously uncertainty in the contracting community surrounding the implementation and enforcement of the rule, given its potential impact on contractors, the White House is making clear it will not be delayed and waivers could be difficult to get.

Amazon's cloud unit is a major contractor with the US intelligence community, and it has been battling Microsoft Corp for an up to US$10 billion cloud computing deal with the Pentagon.

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