US gets law that partially bans the use of Huawei and ZTE equipment in government

President Donald Trump has signed a law prohibiting US government organizations and government companies from using Huawei and ZTE equipment at critical points in its infrastructure.

The law is not a blanket ban on the use of equipment and components from Huawei and ZTE, according to the text of the Defense Authorization Act. Only if it concerns a ‘substantial or essential component’ of an infrastructure, equipment from Huawei and ZTE and a number of other Chinese suppliers is prohibited. President Trump signed the law on Monday, meaning it will become final.

The law will take effect in the next two years and could affect the business of Huawei in the United States in particular. Until now, there was an advice not to use equipment from Huawei and ZTE, but it was not yet a direct ban. Now, companies that want to do business with the government may not renew any contracts with Huawei and ZTE.

It is still unknown whether Huawei will contest the provisions, but the manufacturer does not agree, according to a statement to The Verge. Trump actually helped ZTE survive after a US government agency imposed a seven-year trade ban. An agreement between Trump and ZTE allowed the Chinese manufacturer to resume trading.