US seeks Huawei ban delay for contractors

Huawei

After the much-touted ban on China’s Huawei Technologies Co Ltd., there are signs that the ban might not have been well thought-out.

President Donald Trump’s The White House Office of Management and Budget is now seeking that the ban should be phased in order to protect American contractors who do business with Huawei.

This is coming a few weeks after the US placed Huawei on its ‘Entity List’ alongside over 68 affiliates, a law that bans Huawei from doing business in and with an American company.

America has accused Huawei of being close to the Chinese Communist Party, the CCP, and China’s intelligence community, meaning that Huawei is a national security risk for the US. While the telecoms giant has denied the allegations, the ban is part of America’s elaborate trade war with China.

According to a Reuters News report, there are signs that the ban might not take full effect until after two years. This is because, the White House it would need about two additional years to work out rules for ‘another part of the law, which requires third-party suppliers and contractors to restrict their purchases and use of Huawei equipment.’

Jacob Wood, a spokesman for the White House OMB, was quoted by Reuters that:

“This is about ensuring that companies who do business with the U.S. government or receive federal grants and loans have time to extricate themselves from doing business with Huawei and other Chinese tech companies listed in the NDAA,”

Vought said the delay would “ensure the effective implementation of the prohibition without compromising desired security objectives,” and said there would be a “dramatic reduction” in the number of contractors able to sell to the U.S. government without a delay.

Huawei has since filed a lawsuit at a Texas Court to challenge the ban claiming it is unconstitutional and a form of bully.