Federal Prohibitions on Purchases of Certain Equipment
Section 889 of the National Defense Authorization Act of 2019 prohibits federal agencies from entering into contracts, including sponsored research contracts, with an entity that uses “covered telecommunications equipment or services” as a “substantial or essential component of any system” or as “critical technology as part of any system”. Section 889 also prohibits the use of federal loan or grant funds to procure or obtain covered telecommunications equipment or services. These prohibitions went into effective on August 13, 2020.
Section 889 also prohibits contractors from providing to the Government any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.
“Covered telecommunications equipment or services” are:
- Telecommunications equipment produced by Huawei Technologies Company, ZTE Corporation, or any subsidiary or affiliate of these entities;
- Video surveillance technology and equipment used for certain public safety, physical surveillance, or national security purposes and produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, Dahua Technology Company, or any subsidiary or affiliate of these entities;
- Telecommunications or video surveillance services provided by any of the above-named entities or using the above-described equipment; and
- Telecommunications or video surveillance equipment or services of an entity that the U.S. Secretary of Defense reasonably believes to be owned or controlled by, or otherwise connected to, the government of the People’s Republic of China.
