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Donald Trump to ban contract with companies that use Huawei

Summary

Donald Trump’s government is just ending sanctions on Huawei and other Chinese companies. ZTE, Hikvision, Dahua and Hytera are other affected companies. After implementing the new regulations, the United States will no longer sign federal procurement contracts with companies that […]

Donald Trump’s government is just ending sanctions on Huawei and other Chinese companies. ZTE, Hikvision, Dahua and Hytera are other affected companies.

After implementing the new regulations, the United States will no longer sign federal procurement contracts with companies that use the products of those sanctioned. The only exception is if the federal sphere waives the sanction in any specific contract.

With growing public debt and more than $ 26 trillion, the United States spends about $ 500 billion annually on contracts. This means that sanctioned companies can no longer compete in a market worth half a trillion dollars a year.

The sanction impacts, however, are not felt exclusively by the Chinese. Companies that fight for contracts with the federal government complained about the problems caused by the law and asked for extensions in the adaptation time, which is currently scheduled for August 13.

Sanctioned companies are leaders in the markets they work in, so it is difficult to provide some services without hiring them. While Huawei and ZTE are important players in the telecommunications industry, Hytera is the market leader in radio communications.

Dahua and Hikvision, for their part, are extremely relevant in the market for cameras and surveillance equipment.

xemplificando os impactos disso, a Amazon recebeu recentemente 1.500 câmeras térmicas Dahua para monitorar a temperatura de seus funcionários durante a pandemia.

A gigante de Jeff Bezos fica, ao menos na teoria, incapacitada de participar de contratos federais. Ao mesmo tempo, Amazon e Microsoft disputam um contrato de nada menos que US$ 10 bilhões para fornecer serviços de computação em nuvem à inteligência americana.

Caso a nova regulação seja posta em prática, a Microsoft pode ficar com o caminho limpo para fechar o contrato. É possível ainda que isso implique em aumento nos valores contratuais ou em um serviço que poderia ser melhor em caso de maior abertura para competição.