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White House will meet deadline on Huawei ban

Credit: Reuters Studio
Published on June 13, 2019 - Duration: 01:34s

White House will meet deadline on Huawei ban

The White House's budget office tells Congress it will now meet a two-year deadline to ban federal contracts with companies that do business with Chinese telecom giant Huawei, part of a defense law passed last year.

The Office of Management and Budget had recently asked for more time to phase in the ban.

Eve Johnson reports.

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White House will meet deadline on Huawei ban

The Trump administration's plan to pressure Chinese telecoms giant Huawei is back on track.

In a letter dated Wednesday (June 12), the White House's acting budget chief told Congress that his office will be able to meet a key deadline to implement part of a ban targeting Huawei.

The Office of Management and Budget has had two years to roll out the National Defense Authorization Act from the time it was signed by President Donald Trump last year.

It bars government agencies and contractors from doing business with Huawei as a matter of national security.

And is one of a number of actions taken by Washington to put the squeeze on the world's largest maker of telecoms gear.

Washington has accused Huawei of spying for Beijing and stealing intellectual property.

But last week, the OMB said it was going to need more time to phase in part of the law requiring contractors and third-party suppliers to restrict their own use of Huawei gear.

Acting budget Chief Russ Vought asked Congress for four years, saying otherwise there would be a dramatic reduction in the number of contractors able to sell to the U.S. government.

But on Wednesday (June 12) Vought shifted gears.

In the letter seen by Reuters, he said the OMB would be able to meet the deadline after all, hinting at pressure from Congress.

The National Defense Authorization Act also bans the government from buying Huawei equipment directly.

That ban will take effect this year.

Huawei says it is not controlled by Beijing and has filed a lawsuit against the U.S. government over the restrictions.

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