The US has been using Huawei as bait to grab a good trade negotiation with China and in the process, the US government has now barred its agencies from doing business with the Chinese tech giant.
The Trump administration is expected to relate a rule on Wednesday afternoon that bans agencies from directly purchasing telecom, video surveillance equipment or services from Huawei. The prohibition was decided by Congress as part of a broader defense bill signed into law last year, reported CNBC.
The new rule also applicable for other telecom firms such as ZTE and Hikvision under security concerns and will take effect on Tuesday. This law expected to be expanded to more firms related to Huawei and others.
This new move against Huawei is a separate mandate from the Trump administration’s own efforts to rein in Huawei’s dominance in the industry.
Back in May, the US Commerce Department barred Huawei from doing its business with American firms, citing that Huawei can use its equipment for national security breaching, of which the company has repeatedly denied.