ZTE may have gotten a reprieve from the draconic policies passed by the Trump Administration but the company’s troubles did not end there, nor did the headaches for Huawei, that was dropped from major carriers in the US. Now, a new defense bill signed into law by President Trump is effectively banning the use of ZTE, Huawei and other Chinese tech companies’ equipment in US government agencies.
As part of the Defense Authorization Act, the bill signed by President Trump bans any Chinese-made tech that is a “substantial or essential component of any system” or any covered telecommunications equipment or services. The ban hammer covers quite a large area, as the Defense Authorization act also allows the elimination of any and all tech that the “Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.”
So far, neither ZTE nor Huawei made a statement related to the new ban, though it probably does not surprise anyone. Huawei itself has been viewed suspiciously in the US since 2012, while ZTE has lost a lot of reputation after the last few month’s events.