U.S. companies are dissatisfied with the governments purchase ban on Huawei and other Chinese companies, demanding an extension of one year

category:Finance
 U.S. companies are dissatisfied with the governments purchase ban on Huawei and other Chinese companies, demanding an extension of one year


On October 10, the U.S. Defense News Network released an article entitled contractors say the U.S. governments ban on Huawei is progressing too fast, and pointed out that both the professional services council and the Defense Industry Association believe that it is not the time to shut down Huawei and other Chinese enterprises, but should pay more attention to how the United States recovers from the crisis of the new crown epidemic. The Defense Industry Association believes that US companies need more buffer time, and said the ban on Chinese companies such as Huawei should be postponed for at least one year.

The U.S. government contractors also began to complain that the governments ban on Huawei was too fast..

Screenshot: US government contractors say the US governments ban on Huawei is going too far

Last month, David bertou, chairman of the U.S. professional services council, said in an interview with federal news on radio Washington, D.C., that the defense authorization act of the fiscal year 2019 was passed in August 2018, and the requirements of section 889 of the act are mainly implemented in two stages (Note: the provision prohibits U.S. federal agencies and their contractors from purchasing equipment of specific Chinese companies) And services). The first phase, to be implemented in August last year, will prohibit U.S. government contractors from using government funds to purchase banned equipment. The second phase, which will take effect on August 13 this year, will further prohibit U.S. government contractors from using such equipment.

Beltu pointed out that the first mock exam prohibition of the term use by contractors is not clearly defined and specified in the bill. This ambiguous concept is difficult for contractors to judge and dispute. Meanwhile, the novel coronavirus pneumonia epidemic situation in the US is still worrying, and there is no solution to replace HUAWEI and other enterprises. In addition, if the U.S. governments contractors need to replace the equipment, the cost is also very high.

It is worth mentioning that Berto also admitted in an interview that the ban could become a political issue. However, at present, American companies are in trouble and they dont know what to do, how to do it and when. The Council of professional services is not sure whether the legislation will be completed on August 13. As a result, Berto said, the situation after that may be more favorable to China than harmful to China.

Screenshot of the report: the U.S. policy toward Huawei has put the U.S. governments contractors in trouble

In addition, the U.S. defense minister in charge of procurement and maintenance also supported the extension of the ban, saying that it was not because someone wanted to be soft on China or Huawei, but because the law was difficult to implement in the absence of guidance. The Departments deputy minister, Alan Lord, said that if the law takes effect on time, the defense industrial base will be in chaos.

In this regard, Reuters also cited Amazon as an example, saying that Amazon purchased a batch of temperature measuring equipment from Dahua in April, but Amazons cloud computing department is also one of the cloud computing contractors of the US intelligence agency.

However, even if the U.S. government may be troubling some of its major contracting projects, it will push ahead with the ban. An article in the financial times on the 11th pointed out that some contractors of U.S. government projects have asked the government to extend the ban on Chinese enterprises, but the White House is still pushing ahead with all efforts. At present, the U.S. government is asking its contractors to prove that they have no business ties with Chinese companies such as Huawei.

Huawei told observer at the time that it was disappointed with the decision. Huawei issued a statement on the judgment: we understand the importance of national security, but the way that the U.S. government restricts Huawei by using the defense authorization act of 2019 can only provide it with a false sense of security and violate Huaweis constitutional rights. We will consider further legal action.

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