Federal agencies will soon not be able to purchase products and services from companies that do business with Huawei and four other Chinese companies, which are all considered to be threats to national security, Reuters reported.
This move is designed to comply with the 2019’s National Defense Authorization Act.
A ban was already put in place in August 2019, barring federal agencies from buying telecommunications products, surveillance equipment and other products or services from Huawei, ZTE Corporation, Dahua Technology Company, Hangzhou Hikvision and Hytera Communications.
The new ban, which will begin on August 13, will prohibit any agency from working with companies that buy products and services from those five Chinese companies.
The Trump administration thinks that buying anything from Chinese telecom companies can lead to potential security breaches through back door data theft devices built into the products.
As part of the clampdown, federal contractors won't even have permission to buy technology from Chinese companies without getting a waiver.
New federal regulations will require federal agencies to go through a national security analysis before getting a waiver.
The goal of these restrictions is to combat the Chinese Communist Party's influence, particularly related to Huawei, and ultimately to dissuade businesses from using Chinese technology that may be compromised by China's government.
“The danger our nation faces from foreign adversaries like China looking to infiltrate our systems is great,” acting OMB Director Russ Vought said in a statement to the Washington Examiner. “The Trump administration is keeping our government strong against nefarious networks like Huawei by fully implementing the ban on federal procurement.”
© 2026 Newsmax. All rights reserved.