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U.S. bans Huawei from government contracts

2019-08-07 18:00 by
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The Trump administration on Wednesday released a rule that restricts government agencies from doing business with Huawei, the giant Chinese maker of telecommunications equipment and smartphones. The interim rule will preclude any US federal agency from purchasing telecom or technology equipment from the firms "as a substantial or essential component of any system, or as critical technology as part of any system," starting August 13.

The ban is part of a broad U.S. push against Huawei Technologies Co Ltd, the world's largest telecommunications network gear maker, which Washington accuses of espionage and stealing intellectual property.

"The administration has a strong commitment to defending our nation from foreign adversaries, and will fully comply with Congress on the implementation of the prohibition of Chinese telecom and video surveillance equipment companies, including Huawei," said Jacob Wood, spokesperson for the Office of Management and Budget, in an email.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. It has filed a lawsuit against the U.S. government over the restrictions in the defense policy bill.

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