US: Excludes five Chinese companies, enforces new rules, and deals with Japanese companies

US: Excludes five Chinese companies, enforces new rules, and deals with Japanese companies

USA:

On August 13, the US government will enforce rules prohibiting transactions with the US government regarding companies that use products from five Chinese high-tech companies.

In the future, Japanese companies (including businesses) will need to scrutinize the end of the supplier to see if they are using prohibited items.

5 companies in China:

Huawei technology for communication equipment (Huawei)
Zhongxing Zhongxing (ZTE),
Hainan Communication (High Terra)
Hangzhou Haiyasu Numeral Technology (Hike Vision)
Zhejiang Dahua Technology (Darfa Technology)

Measures based on the Defense Authority Act of 2018.

In August last year, five companies were excluded from the US government’s suppliers.

This time, companies that use 5 products will also be excluded from the suppliers.

(Sankei Shimbun)

https://news.yahoo.co.jp/articles/ab95fa611a0203c66b7b992263ab0b4f5b1c4c5e

Enforcement of the law prohibiting transactions with 5 US companies on 13th: Japanese companies’ response

Dealing with Japanese companies:

About 870 Japanese companies have deals with US government agencies.

The transaction amount exceeds 150 billion yen annually.

Each company is required to “prove that they are not using the target product when signing a new contract in the future.”

Products from Five Chinese Companies: Switching

As a result of the enforcement of this law, major Japanese companies are switching from products of five Chinese companies to products of other companies.

NTT:

There was an example of using products from five Chinese companies overseas.

It means that they are gradually switching to products of other companies.

Softbank:

We are in the process of switching because we are using products such as Huawei at some of our 4G communication equipment.

“5G” base stations:

NTT Docomo, KDDI, and SoftBank both say that they are not using the products of five Chinese companies as base stations.

Toshiba:

In our subsidiary/elevator business, we are using “surveillance cameras made by Haiku Vision in China”.

However, this subsidiary has no dealings with the US government.

Toshiba has no immediate effect.

Hitachi:

The products delivered to the US government are no longer using the products of five Chinese companies.

US-China conflict | NHK News

https://www3.nhk.or.jp/news/html/20200813/k10012564721000.html?utm_int=news-business_contents_news-main_002