The provision is likely to become law given its inclusion in the bill, which is considered “must-pass” before Congress adjourns for the year, though an unrelated provision on transgender care for minors could cost the legislation Democratic support needed to pass it.

If approved, the bill risks squeezing global chip firms with ties to Shenzhen-based Huawei, which has been targeted by US sanctions as part of a broader campaign in Washington to rein in China’s tech ambitions. Companies that maintain business ties with Huawei could lose access to work for the Pentagon, which committed nearly US$460 billion on contracts in fiscal 2023, according to the Government Accountability Office.

The bill emerged as the US continues to tighten limits on China’s access to advanced technologies, though the Commerce Department still allows Huawei to receive a limited flow of less-sensitive goods. Last week, Republican Representative John Moolenaar, who chairs the House’s China Select Committee, criticised the Biden administration for leaving loopholes for Huawei to continue acquiring American technology.