Although the purchase of Chinese produced telecommunications equipment is banned, the government is likely to see it in its supply chain for years to come. Since Section 889 law went into effect, contractors have requested waivers to keep their equipment in place and the Office of the Director of National Intelligence has issued them. Many waivers that expired last week (30 September) have been extended for an additional two years. (Federal News Network, October 2, 2020)

One such agency requesting an extension, the U.S. Agency for International Development, requested a waiver from 889 and has been given until the end of fiscal year 2022 to remove Chinese telecom equipment. The waiver states the following, “As of September 30, 2022, the Agency statutory waiver authority ends and the Agency will not enter into any contracts with contractors using covered technology. For contractors that wish to continue to do business with USAID, it is important to phase out the use of covered technology. Recipients should ensure they have alternate funding because costs for covered technology will become unallowable. In regard to assistance (grants/cooperative agreements), the Agency will be revising its policy to extend the period of the allowability of costs for internet and telephone services for new awards made during the duration of the waiver.” (USAID Telcom Waiver, September 30, 2020)

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