The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Hikvision has dismissed US and UK claims it aids the Chinese government in human rights abuses against the ethnic minority Uyghurs.
The ministry said any Hikvision equipment it owns was bought before it knew of the human rights concerns.
"MBIE takes matters of human rights very seriously, and under Rule 44 of the Government Procurement Rules, will exclude any suppliers that may be in violation of these rights," workplace general manger Adrian Regnault said.
"We now specify that we will not accept Hikvision equipment and have reminded our suppliers of the Supplier Code of Conduct they are expected to adhere to as government suppliers.
"This code states they must adhere to international human rights standards in their workplace and monitor and address these standards within their supply chain."
The ministry worked to set a good example and considered the wider social, economic, cultural, and environmental outcomes, beyond just value for money, Regnault said.