It’s yet another setback for the firm

After Huawei’s plans to start selling their phones in the US via telco AT&T fell through at the last minute, the Chinese firm has received another setback in their plans to penetrate the country. US representative Mike Conaway (R-Texas) has just introduced a bill dubbed “Defending US Government Communications Act” which effectively puts a ban on the use of equipment and services from both Huawei and ZTE because of spying concerns.

Rep. Conway cites spying concerns as the main reasons for the creation of the bill, which are based on a report issued by the House Intelligence Committee in 2012 that tagged Huawei and ZTE in a national threat.

Specifically, if the law passes, it’ll prevent engaging with third-party entities that use any kind of telecommunications equipment produced by either Huawei or ZTE (or any of their subsidiaries), telecommunications services provided by any entities using the said equipment, as well as any telecommunications equipment or services produced or provided by an entity that the head of the relevant agency reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

Before the bill passes to a law however, it will need to be approved by the Committee on Oversight and Government Reform. It’ll then be passed to the senate, then if approved, move to the President for final signature and approval before it becomes a law.