Instrument

Procurement ban on adversary technology

A procurement ban on adversary technology is a statutory or regulatory bar on designated adversary firms' products and services in public procurement and, in its extended form, in regulated private networks. It is market denial by rule: the state uses its own purchasing power, and its licensing power over critical sectors, to foreclose an adversary champion's market position without a general trade measure.

Mechanism

The ban escalates through three rings. The narrow ring covers government purchasing: agencies may not buy the designated equipment. The middle ring covers government counterparties: contractors may not use the equipment anywhere in their business, which multiplies the exclusion through supply chains. The outer ring covers regulated infrastructure: licence conditions bar the equipment from telecommunications and other critical networks regardless of any government nexus, and remediation programmes fund the removal of installed equipment. At the outer ring the instrument converges with Critical-infrastructure ownership review: both police adversary presence inside essential systems, one through ownership, the other through the equipment layer. The security rationale is that network equipment and security software carry standing update and access channels from their vendor, making the supplier's jurisdiction a threat vector in itself.

The US campaign against Chinese network vendors assembled the full architecture. Section 889 Part A took effect on 13 August 2019 and barred federal procurement of covered telecommunications equipment and services. Part B took effect on 13 August 2020 and generally barred agencies from contracting with an entity that uses covered equipment or services, subject to the statute's exceptions and waiver processes. The Secure and Trusted Communications Networks Act (2019) created a separate FCC regime for covered communications equipment and reimbursement of eligible network-removal costs. Covered-list status, federal procurement exclusion, licensing action and reimbursement eligibility are related but legally distinct.

The Commerce Department's 2024 Kaspersky determination arose under the ICTS regime, not Section 889. It prohibited new US agreements involving Kaspersky products from 20 July 2024 and prohibited updates, Kaspersky Security Network functions, resale, integration and licensing from 29 September 2024. The determination excluded purely informational or educational threat-intelligence, training and advisory services. These are legal controls on specified transactions and services; designation alone does not establish the security effect of every product. Allies also adopted their own network restrictions, including the United Kingdom's timetable for removing Huawei equipment, treated at Allied restrictions on Huawei in 5G networks (2018-present).

Effects and countermeasures

The cited authorities establish the exclusions and the design of the transition, not their aggregate commercial or security effect. A covered supplier loses eligibility for the specified procurement or regulated network, while affected carriers and agencies may bear replacement, testing and service-continuity costs. The FCC reimbursement programme addresses part of that domestic burden. Enforcement must also identify subsidiaries, affiliates and rebranded products without treating corporate association alone as proof that an item is covered. Claims that these measures changed global market structure, improved network security or accelerated an alternative technology ecosystem require separate market and technical evidence.

See also

Secure and Trusted Communications Networks Act (2019) · Executive Order 13873 and ICTS rules (2019) · Allied restrictions on Huawei in 5G networks (2018-present) · Technology denial · Economic statecraft

Sources

Recommended citation

Cite this entry

Tennant, James J., ed. 'Procurement ban on adversary technology.' The Encyclopedia of Economic Statecraft, version 2.0, last reviewed 30 July 2026. https://jamesjtennant.com/entries/procurement-ban-on-adversary-technology/.

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