• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Tech
Asia

Even the Pentagon can’t completely freeze Huawei out of its operations

By
Daniel Flatley
Daniel Flatley
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Daniel Flatley
Daniel Flatley
and
Bloomberg
Bloomberg
Down Arrow Button Icon
July 3, 2024, 7:48 AM ET
Huawei's stand at the 2024 Mobile World Congress (MWC Shanghai) in Shanghai on June 26, 2024.
Huawei's stand at the 2024 Mobile World Congress (MWC Shanghai) in Shanghai on June 26, 2024. Costfoto/NurPhoto via Getty Images

The Pentagon has a problem: How does one of the world’s largest employers avoid doing business with companies that rely on China’s Huawei Technologies Co., the world’s largest telecommunications provider?

So far, the Defense Department is saying that it can’t, despite a 2019 US law that barred it from contracting with anyone who uses Huawei equipment. The Pentagon’s push for an exemption is provoking a fresh showdown with Congress that defense officials warn could jeopardize national security if not resolved.

As it has done since the law was passed more than five years ago, the Pentagon is seeking a formal waiver to its obligations under Section 889 of the 2019 National Defense Authorization Act, which barred government agencies from signing contracts with entities that use Huawei components. 

Its rationale is that Huawei is so firmly entrenched in the systems of countries where it does business — the company accounts for almost one-third of all telecommunications equipment revenue globally — that finding alternatives would be impossible. Meeting the restrictions to the letter would disrupt the Pentagon’s ability to purchase the vast quantities of medical supplies, drugs, clothing and other types of logistical support the military relies on, officials contend.

“There are certain parts of the world where you literally cannot get away from Huawei,” said Brennan Grignon, the founder of 5M Strategies and a former Defense Department official. “The original legislation had very good intentions behind it, but the execution and understanding of the implications of what it would mean, I personally think that wasn’t really thought through,” she said.

So far, the House and Senate committees in charge of the legislation have declined to include a waiver in the 2025 National Defense Authorization Act. That’s a reflection of growing anti-China sentiment and a frustration that Huawei, whose profit surged 564% in the most recent quarter, has managed to deflect the impact of US financial sanctions imposed on the company.

Representatives for the House and Senate Armed Services Committees did not respond to requests for comment.

The move to target Huawei hearkens back to the US push that began in earnest under President Donald Trump to get tough on China and companies like Huawei that American officials say could be used as a spying tool by the Chinese government.

That push has mirrored a broader US effort to persuade governments to rid Huawei from their most sensitive networks. A refusal by the United Arab Emirates to rip out all Huawei hardware from its tech networks scuttled a deal for the Gulf nation to buy F-35 fighter jets. The US has made similar requests to Saudi Arabia and some Latin American nations. 

In some cases, countries have objected, arguing that the US and its allies have no alternative to Huawei’s products, which are often much less expensive than those offered by competitors. 

‘They’re Lazy’

The Pentagon argument doesn’t hold sway with some China hawks, who argue that the Defense Department must move more quickly and use its sway as a major buyer to force change.

“I do have some sympathy with the Pentagon guys because they do have a huge network of different things that they have to connect with in the Asia-Pacific region and also in Europe,” said Clyde Prestowitz, president of the Economic Strategy Institute. “But they’re lazy. For companies in those areas, to have big business with the US Department of the Defense is important. And I feel that we should be taking every step to eliminate Huawei where we can.”

Yet in an analysis released in April, the Pentagon maintained that granting the waiver authority “would enable vital resupply missions in the Indo-Pacific, European and African theaters.”

In many parts of the world, US military personnel depend on Huawei networks to do their jobs, from special operators carrying out missions in Africa to senior Pentagon officials attending international air shows in Paris and Farnborough, outside of London.

Pentagon spokesman Jeff Jurgensen said extending the waiver would allow for purchases if they’re deemed to further US national security interests. The waiver wouldn’t extend to elements of the intelligence community, he said.

Senator Mark Warner, chairman of the chamber’s intelligence committee, acknowledged a waiver may be necessary. But he declined to say when or if that might happen.

“I understand the need for 889 waivers in limited contexts where it’s in the larger national security interest of the United States,” Warner, a Virginia Democrat, said in a statement.

Join our exclusive webinar on May 28, featuring tech leaders from Orange, Mars, Reckitt, and Saint-Gobain. Apply to attend and receive Fortune’s editorial takeaways.
About the Authors
By Daniel Flatley
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Sheryl Sandberg tells Gen Z the 10-year career plan is dead as AI wipes out entry-level jobs: ‘Don’t script your career when the future is uncertain’
Successcareer
Sheryl Sandberg tells Gen Z the 10-year career plan is dead as AI wipes out entry-level jobs: ‘Don’t script your career when the future is uncertain’
By Orianna Rosa RoyleMay 21, 2026
2 hours ago
Microsoft lost its way in the AI race. Can Copilot get it back on course?
MagazineMicrosoft
Microsoft lost its way in the AI race. Can Copilot get it back on course?
By Jeremy KahnMay 21, 2026
2 hours ago
Samuel Corum/Getty Images
Big TechSpaceX
Elon Musk’s proposed pay package in SpaceX’s IPO filing reveals what the company actually is: a $1 trillion monster built to colonize Mars
By Eva RoytburgMay 20, 2026
9 hours ago
elon
SuccessIPOs
SpaceX IPO targets $28.5 trillion total addressable market, mission to ‘make life multiplanetary’ and understand ‘true nature of the universe’
By Nick LichtenbergMay 20, 2026
11 hours ago
Jensen Huang, chief executive officer of Nvidia
AINvidia
Nvidia tells skeptical investors that AI is ready to go mainstream
By Ian King and BloombergMay 20, 2026
11 hours ago
SpaceX finally files IPO prospectus, reveals revenue is up–but losses are too
Big TechSpaceX
SpaceX finally files IPO prospectus, reveals revenue is up–but losses are too
By Allie Garfinkle and Alexei OreskovicMay 20, 2026
11 hours ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
18 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
4 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
9 days ago
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
Workplace Culture
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
By Preston ForeMay 19, 2026
2 days ago
Current price of oil as of May 20, 2026
Personal Finance
Current price of oil as of May 20, 2026
By Joseph HostetlerMay 20, 2026
19 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.