The federal government is increasingly taking the initiative to alert companies to the cybersecurity risks of certain foreign corporations, by issuing binding directives on agencies, passing laws, and promulgating regulations that include prohibitions on the use of these companies’ products, even by independent government contractors.
For example, the 2019 National Defense Authorization Act imposes new restrictions on procurements for certain telecommunications equipment or services from certain Chinese companies, including Huawei, ZTE, Hytera, Hikvision, and Dahua Technology.
Sheppard Mullin attorneys recommend that lawyers and cybersecurity professionals pay attention to the government’s various statements and prohibitions about foreign companies and their risks to cybersecurity, and that government contractors should study the NDAA’s provisions.
Further, they advise that a new executive order on this subject is expected soon.