President Trump signs bill banning government use of ZTE and Huawei tech

Hannah Rogers
August 15, 2018

Despite its seemingly miraculous recovery, ZTE is by no means off the hook. The Department of Commerce issued the ban primarily because ZTE was ignoring the sanctions against Iran and other countries. Billions of dollars of fines later, the company finally got respite and was able to resume operations in the United States, albeit under the watchful eye of regulators.

US President Donal Trump has recently signed a defense policy bill that bans the government use of any telecommunications device from Huawei and ZTE or their subsidiaries due to security concerns.

Today, President Trump signed the bill into action. Back in June, the US Senate passed a version of the bill that would have re-imposed an export ban that would have been a de facto death sentence for ZTE because ZTE is heavily dependent on components like Qualcomm chips and Google's Android operating system.

The 2019 NDAA bill bans US federal agencies from using anything from Huawei or ZTE that is a "substantial or essential component of any system", as well as any technology that is used to route or view user data.

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Huawei is doing great nowadays, but ZTE has been having a rough time lately.

In addition, the Act makes arrangements for funding to be provided to contractors that will need to change technologies as a result of the ban.

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". Even the Huawei Mate 10 was dropped by the carrier for similar reasons.

(B) For the goal of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities). And ZTE is the fourth-largest smartphone maker in the US.

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