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Economy

U.S. budget official pushes for delay on Huawei ban: report

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2019-06-10 23:58:16Xinhua Editor : Wang Fan ECNS App Download

The White House's acting budget chief is calling for a reprieve on the Huawei ban that restricts the U.S. government's business with the Chinese company, U.S. media reported Sunday.

His request asked for a delay in the implementation of portions of the 2019 National Defense Authorization Act (NDAA), the Wall Street Journal (WSJ) reported, citing a letter from Russell Vought, acting director of the U.S. Office of Management and Budget, to U.S. Vice President Mike Pence and nine members of Congress.

The NDAA, signed by President Donald Trump last year, included a ban on the U.S. government agencies and those receiving federal grants and loans from doing business with Huawei, and companies substantially using Huawei products.

Vought said in the letter that the NDAA rules could lead to a "dramatic reduction" in the number of companies that would be able to supply the government, and would "disproportionately" affect U.S. companies in rural areas that rely on federal grants and widely use Huawei products.

Vought suggested the restrictions take effect four years from the law's passage, rather than the current two years, so that the government contractors and federal loan and grant recipients could have time to respond and give feedback, according to the WSJ report.

Song Liuping, Huawei's chief legal officer, wrote in an opinion article on the WSJ on May 27 that Huawei has sued and would file a motion for summary judgment asking a U.S. court to declare the NDAA law unconstitutional.

The Bureau of Industry and Security of the U.S. Department of Commerce in May put Huawei and its affiliates on an "Entity List," which restricts the sale or transfer of U.S. technologies to the company. The ban has triggered opposition from markets worldwide.

Google has also warned Washington it risks compromising U.S. national security if it continues sweeping export restrictions on Huawei, as the technology group seeks to maintain business with the Chinese company, Financial Times reported on June 7.

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