US President, Donald Trump finally signed a bill that banned government from using Huawei or ZTE products. But it is totally different as only ZTE will be able to conduct little operations within the country. This acts will massively affect the both companies operation within the country. Hence, US government can’t use Huawei or ZTE products
Since ZTE violated trade bans with Iran and North Korea, US government has blocked the company from purchasing any hardware parts from the country. But Trump was already in deal-making with Beijing, which would have help bring back ZTE, but protest from bipartisan stopped it.
How long will Huawei and ZTE face the punishment?
The Democrats and Republicans are against both mobile phone makers, and the reason is, the Chinese telecom poses as a great national security threat. Anyways, Congress has decided to some form critical measure for anyone that wants to work with the US government from using components from Huawei, ZTE, or a number of other Chinese communications companies over the next two years.
According to TheVerge, some components from these tech companies are still allowed, so long as they cannot be used to route or view data. Huawei called the ban a “random addition” to the defense bill that was “ineffective, misguided, and unconstitutional.” Huawei said the ban would increase costs for consumers and businesses, and that it failed to “identify real security risks or improve supply chain security.”
At first, ZTE was attempting to meet a range of requirements that would allow it to resume full business activities in the US, one was paying a $1bn penalty, and others.
But right now, everyone is still unsure of the US next move, Huawei and ZTE being a national security threat, or they are just Chinese companies?