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Trump administration is concluding contract ban with companies using Huawei

by Ace Damon

The Trump administration is just ending sanctions on Huawei and other Chinese companies. ZTE, Hikvision, Dahua and Hytera are other affected companies.

After implementing the new regulations, the United States will no longer sign federal procurement contracts with companies that use the products of those sanctioned. The only exception is if the federal sphere waives the sanction in any specific contract.

With growing public debt and going from $ 26 trillion, the US spends around $ 500 billion annually on contracts. It means, therefore, that sanctioned companies can no longer compete in a market worth half a trillion dollars a year.

The sanction impacts, however, are not felt exclusively by the Chinese. Companies that fight for contracts with the federal government complained about the problems caused by the law and asked for extensions in the adaptation time, which is currently scheduled for August 13.

Sanctioned companies are leaders in the markets they work in, so it is difficult to provide some services without hiring them. While Huawei and ZTE are important players in the telecommunications industry, Hytera is the market leader in radio communications.

Dahua and Hikvision, for their part, are extremely relevant in the market for cameras and surveillance equipment.

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Exemplifying the impacts of this, Amazon recently received 1,500 Dahua thermal cameras to monitor the temperature of its employees during the pandemic.

Jeff Bezos’s giant is, at least in theory, unable to participate in federal contracts. At the same time, Amazon and Microsoft are vying for a contract of no less than $ 10 billion to provide cloud computing services to American intelligence.

If the new regulation is put in place, Microsoft may have a clear way to close the contract. It is also possible that this implies an increase in contractual values ​​or a service that could be better in case of greater openness to competition.

Via: TechCrunch Source: Reuters


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