Chinese company ZTE was recently banned from sourcing components from U.S.-based suppliers for seven years. The ban stemmed from a sanctions violation case that the company had previously settled. A similar investigation is now being conducted into Huawei as well which has already found it quite difficult to break into the lucrative U.S. smartphone market. Their troubles are far from over because the Pentagon has ordered retail outlets on U.S. military bases across the globe to stop selling Huawei and ZTE smartphones.
The U.S. administration has also voiced security concerns against Chinese companies like Huawei and ZTE. Officials in Washington are of the view that Beijing could compel these companies to hack into the products they make to spy on users or to disable the devices altogether. This is a charge that both Huawei and ZTE have denied time and time again.
“Huawei and ZTE devices may pose an unacceptable risk to the department’s personnel, information, and mission,” a spokesperson for the Pentagon told The Wall Street Journal.
Despite assurances by these companies, the directive issued by the Army & Air Force Exchange Services will result in Huawei and ZTE smartphones being taken off the shelves at retail outlets on U.S. military bases worldwide.
U.S. military personnel haven’t been barred from buying devices from these companies for personal use but they will have to buy them from elsewhere but the Pentagon is said to be considering a wider advisory which may also caution personnel against buying their handsets for even personal use.