President Trump this week signed the Defense Authorization Act, which bans the use of Huawei or ZTE devices by government personnel.
The Defense Authorization Act is an annual piece of legislation that provides funding to the military. Congress added language to the act that makes it illegal for any government employee to buy or use devices or components from either Huawei or ZTE, both of which are considered by some to be security threats.
The move is just of hellist year for Huawei and ZTE, which have seen their U.S. businesses come under attack. Early in the year, Huawei lost distribution deals with AT&T and Verizon. Later, ZTE was hit with a ban on using U.S. components and software.
ZTE was forced to pay a significant fine and agree to other conditions in order to get back to business. The ban on government use of Huawei and ZTE gear goes into effect over the next two years.
