Published: Wed, August 15, 2018
Global Media | By Garry Long

United States effectively bans ZTE and Huawei from any valuable government work

United States effectively bans ZTE and Huawei from any valuable government work

That bill was signed by President Trump today and it starts the two-year period over which the needed changes must be made in compliance with the new rules.

China on Tuesday condemned measures targeting it in a new USA defence act, saying it exaggerated antagonism and that Beijing would take a close look at aspects that beef up the role of a US panel that reviews foreign investment proposals.

Democrats and Republicans alike viewed them as security threats and pushed forward with this bill despite the latter's initial attempt to re-impose sanctions on them instead of an outright trade ban.

The compromise bill removes a provision reinstating penalties against ZTE and restricting the company's ability to buy USA component parts.

Other Chinese tech companies singled out in the bill include a number of video surveillance manufacturers such as Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company. Despite the Fiscal 2019 defense authorization bill being named after the senior Arizona senator and Armed Services Committee chairman, and who is fighting cancer back in the Grand Canyon State, the president made no mention of McCain.

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The special committee has retained lawyers - Latham & Watkins - in addition to a legal team used by the company. The special committee is composed of independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice.

Because the ban on Huawei and ZTE components could prove to be a major disruption to some agencies that relied on the cheaper Chinese technology, the bill also allocates funds for the agencies and companies that need bigger budgets in order to replace all the necessary components.

In a statement to The Verge, Huawei stated that the ban would increase costs for consumers and businesses and that it failed to "identify real security risks or improve supply chain security". That measure was seen as targeting China. The mandate to produce a study came after an earlier version proposed to bar the delivery of F-35s to Turkey.

During his visit to Fort Drum, Trump met with senior leaders and observed an air assault demonstration and sling load operation.

"In confronting these dangers, we know that weakness is the surest path to conflict, and unmatched power is the surest means of our defense", Trump says addressing his national security policy.

In a separate statement, China's foreign ministry said the United States passed the act despite China's strong objections and it was dissatisfied with the "negative content related to China".

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