China's Huawei Technologies Co. Ltd., the world's biggest telecom equipment maker, argued on Wednesday that Washington should scrap plans to prohibit wireless companies from using U.S. government funds to buy Huawei gear for their networks.

Federal Communications Commission Chairman Ajit Pai said in March 2018 that he was proposing banning the use of money from its Universal Service Fund to buy equipment or services from companies that pose a security threat to U.S. communications networks. Pai identified Huawei as a company of concern in a letter to Congress.

The rule has not gone into effect, although Pai reiterated support for it in a congressional hearing last month. A commissioner also asked for comment on whether existing gear from companies of concern should be removed from U.S. telecommunications networks.