Recently, the White House OMB (Office of Management and Budget) told the U.S. Congress it would now reach a 2-Year deadline to forbid federal contracts with firms that do business with Chinese technology giant Huawei, as a part of a defense rule that was passed in the last year. In a letter to Senator James Inhofe, Russ Vought—Acting Director of OMB—said, “Congress has made it obvious in last few days the importance of executing the law in the 2 Years offered, and we would.” In the last week, the OMB had stated that it will need extra time to put into practice the ban, which requires third-party contractors and suppliers to limit their use and purchases of Huawei equipment.
But the White House overturned course following “recent talks with Congress,” Vought stated in the letter. Vought said, “As we go ahead to meet the statutory deadline devoid of further delay, we would function with Congress to deal with any unforeseen issues that occur.” The prohibit is one part of a multilateral US push against Huawei—which is the largest telecoms network gear manufacturer globally—that Washington blames of espionage and stealing IP (intellectual property). Repeatedly, Huawei has denied it is managed by the Chinese administration, military, or intelligence services. It has filed a court case against the U.S. administration for the limitations in the defense policy bill.
Recently, Huawei was in news for asking Verizon Communications to pay over $1 Billion for more than 230 patents. Huawei has told Verizon that the U.S. carrier must pay licensing fees for over 230 of the Chinese telecommunication equipment maker’s patents and collectively is seeking over $1 Billion, a source well-known with the matter stated. Verizon must pay to “resolve the patent licensing problem,” a Huawei IP licensing executive said in February, as reported by The Wall Street Journal.