Home - - New Bill Bans U.S. Government Agencies from Using Huawei and ZTE Tech

New Bill Bans U.S. Government Agencies from Using Huawei and ZTE Tech

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It's official! U.S. government agencies are now banned from buying or using products from ZTE and Huawei. This includes the use of smartphones and other surveillance products. 

The new ban follows a previous ban on the sales of Huawei and ZTE smartphones in military retail stores that was put into effect back in May. It also comes as another obstacle in ZTE's resurrection in the country after it was banned for a short period. 

The new ruling takes effect after U.S. President Donald Trump affixed his signature on the John S. McCain National Defense Authorization Act, putting the ban into law. The bill implemented restrictions on the use of products that were manufactured by China-based technology firms. 

Both ZTE and Huawei were specifically mentioned in the bill as among the tech companies banned for use by government agencies. The other companies mentioned in the bill include video surveillance manufacturers, like Hangzhou Hikvision Digital Technology Company, Dahua Technology Company, and Hytera Communications Corporation. 

The ban details that products from the mentioned companies are no longer allowed to be used as components or services considered as "critical technology" or an "essential component" of the system. Although they may be used in seldom, they cannot be involved in as much as they can. 

In addition to putting the ban in effect, the bill allocated a funding of $716 billion into defense. This funding is to be provided to businesses to allow them to replace their technology and exclude the use of components from either ZTE or Huawei. 

Huawei sent a statement to The Verge and called the ban a "random addition." The Chinese company believed that it is an "ineffective, misguided, and unconstitutional" ban. In its response, the company did not reveal any plans to challenge the bill. But the company shared that they will be increasing costs for businesses and consumers alike. 

Experts believe this new bill is more likely to hurt ZTE. As a smaller player, ZTE has much more to lose than Huawei with this new ruling. 


Source: The Verge   

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  1. It's all about protecting Apple and Samsung, even as they price gouge and fail to meet the market's demand for solid affordable options.

    Notice how Apple just got a boost to their value, even though Huawei was the one growing and conquering the smartphone market even without access to the US.

    They'll win the long game by getting more people hooked on Android, while America will be trying to prop up a company that's too greedy and stagnant to compete.

    Android is like the metric system, and paid off politicians are trying to stall its adoption just to prop up a different way of doing things (paying out the ass for iOS) that just isn't good enough to win on merit.

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    1. People are keeping their increasingly expensive cellphones an average of 30 months, up from 24 just 3 years ago. T-Mobile says their average is 34-35. BayStreet Research says that this situation will likely create challenges for Android smartphone makers—and opportunities for Apple.

      Specifically, the firm explained that most leading Android smartphone vendors provide software updates and support for devices for around two years. Apple, on the other hand, provides software updates and support to devices much more than two years old.

      “Thus, while Android OEMs are increasingly matching Apple’s pricing, we do not see them matching Apple’s customer care, likely leading to different price elasticity between Android and iOS,” the report said.

      BayStreet’s Cliff Maldonado says that Apple continues to slowly but surely gain market share against Android in the U.S. market, and that this support discrepancy will aid the iPhone vendor in its quest to continue stealing share in the maturing smartphone market.

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