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Huawei ban kicks in next week for US government agencies

Chinese tech giant says it'll continue to fight the ban.

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The rules go into effect on Aug. 13.

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The Trump administration on Wednesday released an early publication of a rule that'll ban US government agencies from doing business with Huawei. The ban was mandated by Congress last year as part of the National Defense Authorization Act

The rule, set to go into effect Aug. 13, prohibits federal purchases of telecommunications and video surveillance equipment and services from five Chinese companies, including Huawei and ZTE. The government has another year to meet broader NDAA restrictions that ban federal agencies from working with contractors that use products and services from Huawei and the other banned companies.

"The administration has a strong commitment to defending our nation from foreign adversaries, and will fully comply with Congress on the implementation of the prohibition of Chinese telecom and video surveillance equipment companies, including Huawei," said Jacob Wood, spokesperson for the Office of Management and Budget, in an email.

Huawei said the news was expected and that the company would continue to challenge the constitutionally of the ban

"The NDAA law and its implementing provisions will do nothing to ensure the protection of US telecom networks and systems and rather is trade barrier based on country-of-origin, invoking punitive action without any evidence of wrongdoing," the company said in an emailed statement. "Ultimately, it will be rural citizens across the US that will be most negatively impacted, as the networks they use for digital connectivity rely on Huawei."

ZTE didn't immediately respond to a request for comment.

The NDAA restrictions are separate from the US Department of Commerce putting Huawei on a trade blacklist, following an executive order from President Donald Trump in May. Huawei has been a target of the US lawmakers over concerns about its coziness with the Chinese government and fears that its equipment could be used to spy on other countries and companies. Huawei has repeatedly said those fears are unfounded.

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Originally published Aug. 7, 12:54 p.m. PT.
Update, 1:26 p.m.: Adds comment from the OMB.