When the U.S. Government Declares Companies Cyber-Insecure, We Should All Pay Attention

From: The National Law Review

Article By Jonathan E. Meyer, Townsend L. Bourne, Bryce D. Chadwick | Sheppard, Mullin, Richter & Hampton LLP\

The U.S. Government is increasingly taking the initiative to alert companies to the cybersecurity risks of certain foreign corporations. Whether by issuing binding directives on agencies, passing laws or promulgating regulations that include prohibitions on the use of these companies’ products – including by government contractors, the Government is becoming less reluctant to interfere in the private market in favor of warning American companies of the cybersecurity dangers out there.

As we have mentioned in two prior posts, the Administration began this initiative some time ago. As we discuss in a longer post, the 2019 National Defense Authorization Act imposes new restrictions on procurements for certain telecommunications equipment or services from certain Chinese companies, including Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company.

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