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07/26/2020

Latest U.S. Regulation on Chinese Manufacturers Offers Little Clarity

SDM Magazine

Tensions between the U.S. and China continue to rise in the midst of the coronavirus pandemic, as the U.S. has issued a final rule revising the Federal Acquisition Regulation specifically to implement section 889(a)(1)(B), or “Part B.”

According to the rule, this subsection prohibits executive agencies from entering into, extending or renewing a contract with an entity that uses any equipment, system or service with the following Chinese-made telecommunications equipment or services:

  1. Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities)
  2. For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company (or any subsidiary or affiliate of such entities)

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