US budget chief requests two year delay on some parts of Huawei ban

The US government's budget chief is reportedly pushing for a two-year delay on some parts of the Huawei trade ban.

Stock photo, the flagship store of Huawei in Shanghai, China

2-year delay on US's Huawei ban?

According to Russel T. Vought, the acting director of the Office of Management and Budget, the ban could greatly reduce the number of telecommunication manufactures capable of supplying services to the US government. In addition, manufacturers that serve in rural areas will also suffer major losses as well.

Vought requested the delay through a letter addressed to Vice President Mike Pence and several members of the US Congress. Specifically, he asked for restrictions on contractors and federal loan and grant recipients, from last year's defense bill, to be delayed up to 2 years which can span up to 2022.

Each year, US Congress allocate funds for defense by way of a recurring piece of law called the National Defense Authorization Act. Last year, the main targets for this was Huawei and other Chinese telecom companies since the companies were seen as national security risks to the US.

Up until now, this ban for the Trump administration and its main reason is still unclear. Speculations point in different directions but the most prominent reasons cited by experts were national security concern or as leverage in an ongoing trade deal between the US and China.

Source: The Verge