Trump signs ban on Huawei and ZTE

Trump Signs Bill Named for Sen. McCain, Doesn't Mention Him

Despite its seemingly miraculous recovery, ZTE is by no means off the hook. A bipartisan group of lawmakers attempted to add a provision in the bill that permanently banned ZTE from importing U.S. tech, but that part wasn't in the final version. Billions of dollars of fines later, the company finally got respite and was able to resume operations in the U.S., albeit under the watchful eye of regulators.

President Trump yesterday signed a defense funding bill that included a sweeping ban on the United States government using technology supplied by Chinese telecommunications giants ZTE and Huawei.

Today, President Trump signed the bill into action. The Senate wanted a complete ban on all Huawei and ZTE devices sold into the country, while the House wanted to ban only federal agencies from using the Chinese devices. The bill had been working its way through the legislative red tape maze for months, with the House hitting back at measured included in the text which would have overruled the President's olive branch extended to ZTE when turning over the ban.

The 2019 NDAA bill bans USA federal agencies from using anything from Huawei or ZTE that is a "substantial or essential component of any system", as well as any technology that is used to route or view user data.

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Huawei has also said that the ban would increase costs for consumers and businesses and that it failed to "identify real security risks or improve supply chain security", according to the report. AT&T was supposed to partner up with Huawei to develop 5G networks but scrapped the plan citing "political pressure". It is unclear if Huawei will challenge the decision legally at this point.

By having their names included in this section, USA government agencies are now forbidden from buying or using certain products, components, or services from these Chinese companies.

So while ZTE will no longer be allowed to sell gear to the U.S. government, ZTE officials are likely breathing a sigh of relief, since the Senate bill could have put ZTE out of business altogether.

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