Context. The National Defense Authorization Act (NDAA) for Fiscal Year 2018 stipulates that the Department of Defense may not procure “any equipment, system, or service” from a vendor incorporating components from the Chinese companies Huawei or ZTE anywhere in the vendor’s global supply chain. Vendors were allowed a one year grace period to adjust their supply chains from the time of the bill’s signing into law, a period which ends on August 13, 2020 (H.R. 2810). To go into effect, the Executive Branch must issue implementing rules. Using the same rulemaking process, however, the Executive Branch could delay the law's implementation. A draft final rule is due July 1. The bill reflects a growing tension between economic and security considerations. On the one hand, the bill would further the U.S. government’s efforts to decouple the U.S. and Chinese economies and respond to data security risks such as Chinese access to surveillance data. On the other hand, the bill threatens the U.S. defense industrial base, a roughly $600 billion industry (Bloomberg). 

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