President Donald Trump signed the “John S. McCain National Defense Authorization Act” in the amount of $716 billion and, although the legislation is not banned from Chinese manufacturers, it prevented government agencies from operating in Canada. buy devices from ZTE, Huawei and other Chinese entities.
The Minister of the Environment, 5515, also known as the John S. McCain National Defense Act, is now in effect after President Donald Trump signed it on Monday. The legislation provides for $716 billion in defense funding while imposing new restrictions on the government’s purchase of communication devices from ZTE and other Chinese manufacturers.
A section of the bill entitled “Prohibition of certain video surveillance and surveillance services or equipment” states that government agencies may not obtain “telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities)”.
The legislation also prohibits management from acquiring CCTV equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company (or any subsidiary or subsidiary the reof).
In the absence of Chinese competitors, the ban could open the door for Apple to obtain more government procurement.
United States vs ZTE
According to a report released last month by Vox, an earlier version of the bill contained a total ban on US companies selling parts to ZTE, but the Republicans in Congress diluted the language to a government ban.
In March 2017, ZTE was fined more than $1 billion by the Department of Justice for six years, in violation of the sanctions on the sale of parts in Iran and North Korea.
“We warn the world: the games are over,” Secretary of Commerce Wilbur Ross said in a statement. “Those who flout our economic sanctions and export control laws will not go unpunished – they will suffer the most severe consequences, under the leadership of President Trump we will pursue a strong trade policy aimed at protecting US national security and protect American workers. ”
In April of this year, the FCC instituted what a ban on ZTE operations in the US, blocking its access to parts and software.
The President tweeted in May that he and Chinese President Xi were “working together to give the massive Chinese telephony company, ZTE, a way to get back to work quickly”. The Commerce Department, according to Trump’s instructions, lifted the ban in July, while continuing to monitor ZTE’s actions.
The new defense bill keeps these Chinese products at the disposal of the mainstream market while preventing companies from entering into potentially lucrative government contracts, while the trade war between the administration and China continues to unfold intensify.
The bill was named for Senator John McCain (R-AZ), who is currently battling brain cancer. Much of the media coverage of the legislation focused on the fact that the president had failed to mention McCain’s name in the signing statement, rather than on the substance of the bill.