US agencies study to apply restrictions in former subsidiary of Huawei

US Federal bodies such as the Department of Commerce and the Pentagon are split over whether to place Honor, a former Huawei subsidiary, on the country’s export restriction list .

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According to an article published in The Washington Post, members of the Pentagon and the Departments of Energy, State and Commerce held a meeting last week to decide what action to take in relation to Honor.

A The article indicates that the Department of Energy and the Pentagon recommend that the company have the restrictions applied, while the Departments of State and Commerce are against this decision. If Honor is included in the document, she will need to obtain a license to receive exports from the United States and sell her products in the US territory.

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In August, US lawmakers such as Rep. Michael McCaul of Texas called for the company to be included in the list, alleging that the sale of Honor by Huawei in January 2021 was a strategy for the company to escape the country’s export control.

Huawei sold Honor to Zhixin New Information Technology. Two partners of this company maintain relations with the municipal government of Shenzhen, China.

The US export restriction list

Huawei has been on the US export restrictions list since May 2019, when then American President Donald Trump included her. The list was created to enforce rules implemented at the time, related to the government’s role in protecting the country’s essential networks and infrastructure.

Any company whose name is included in the restriction list Exporters are barred from selling their products in US territory and from purchasing or trading components with US companies without government authorization. The measure is valid for both the company itself and its subsidiaries, which also included Honor before its sale.

Huawei claims that the sale of Honor was a consequence of the company have been banned from exporting components from the US. According to the company, the inclusion in the list affected its ability to acquire processors and software licenses for the manufacture of smartphones from some subsidiaries, such as Honor.

In January of this year, Gina Raimondo, Rhode Island state governor said she intended to evaluate keeping Huawei on the US Commerce Department’s list of restrictions. However, in March, the government of President Joe Biden further limited the Chinese company’s suppliers, further restricting the number of companies that could supply components for the smartphone maker’s 5G devices.

In May, Huawei Vice President Vincent Peng wrote a column in the Nikkei Asia newspaper calling Biden for a conversation. The US president has so far not commented on the invitation.

Source: The Washington Post, Android Headlines, The Verge

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