U.S. Exclusion Affecting Procurement Strategies at Japan Biz

Economy

Tokyo, Aug. 14 (Jiji Press)--New U.S. regulations excluding companies using products of five Chinese high-technology firms from federal contractors are affecting the procurement strategies at Japanese businesses.

In order to continue business with the U.S. government, Japanese companies need to review their operations to meet the new regulations, enforced Thursday, under the 2018 national defense authority law.

Among the five Chinese companies are Huawei Technologies Co., ZTE Corp. and Hangzhou Hikvision Digital Technology Co.

With Huawei having a large share in the communications sector across the world, a possible further strengthening of the regulations would have a greater impact on Japanese companies.

Nippon Telegraph and Telephone Corp. <9432> group companies doing business with the U.S. government have already completed a switch to companies other than those on the U.S. list, an NTT official said.

[Copyright The Jiji Press, Ltd.]

Jiji Press