The white House says it will comply with the two-year time limit for the Huawei banned from building contractors

A FILE PHOTO of A Huawei logo is seen at the CES (Consumer Electronics Show) in Asia to 2019, in Shanghai, China, 11 June, 2019 at the latest. REUTERS/Aly Song

WASHINGTON (Reuters) – The White House’s Office of Management and Budget, told the US Congress that will now be a two-year deadline for a ban on federal contracts with companies that do business with the Chinese telecom giant, Huawei, which is part of the defense of the act in the previous year, according to a letter seen by Reuters.

“The congress has made it clear in the past couple of days, the importance of the implementation of the act within the last two years, and we will,” Russ Vought, the deputy director of the OMB, said in a letter to Senator James Inhofe, chairman of the Senate Armed Services Committee.

Last week, the OMB had said that it would take more time to implement the rule, which requires that a third-party vendors and contractors to reduce their purchases, and the use of the Huawei equipment.

However, the White House, and vice-versa, of course, after the recent talks with the Congress,” Vought said in a letter on Wednesday.

“If we are to move forward in order to comply with the statutory deadline without any further delays, we will work with Congress to address any unforeseen issues that may arise,” Vought said.

The ban is part of a broad U.S. push against Huawei Technologies Co., Ltd, the largest telecom network gear maker, which Washington accuses of espionage, and the theft of intellectual property.

Huawei has repeatedly denied it is controlled by the Chinese government, the military or the intelligence community. It has filed a lawsuit against the U.S. government, the restrictions in the defense policy bill.

The defence act, known as the National Defense Authorization Act (NDAA), which is a broad prohibition on the use of federal funds for the purchase of any products from Huawei, citing national security concerns.

It included a prohibition of direct federal purchases of Huawei equipment, which will take effect this year.

Reporting by Roberta Rampton; Editing by Eric Beech and Sandra Maler

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