Defense Policy Banning Chinese Telecom Will Likely Expand

Law360 (February 5, 2020, 4:18 PM EST) -- On Jan. 22, the U.S. Office of Management and Budget proposed changes to its grants and agreements regulations at Title 2, Part 200 of the Code of Federal Regulations, to implement Section 889 of the National Defense Authorization Act for 2019.

The regulations prohibit the procurement and use of certain covered telecommunications equipment and services produced by Chinese companies — Huawei Technologies Company, ZTE Corporation, Dahua Technology Company, Hikvision Digital Technology Company and Hytera Communications Corporation, and any affiliate or subsidiary thereof.

The OMB’s proposed regulations would create 2 CFR 200.216, providing that "[g]rant, cooperative agreement, and loan recipients are prohibited from...

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