Update: Huawei has responded to the DoC’s move,
We oppose the US Commerce Department’s decision to add another 46 Huawei affiliates to the Entity List. It’s clear that this decision, made at this particular time, is politically motivated and has nothing to do with national security. These actions violate the basic principles of free market competition. They are in no one’s interests, including US companies. Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership. We call on the US government to put an end to this unjust treatment and remove Huawei from the Entity List.
The United States Department of Commerce announced this morning the addition of 46 Huawei affiliates to its Entity List. Effective today, the companies join more than 100 entries added to the list over connections to the embattled Chinese consumer electronics giant.
The DoC also used this morning’s news to announce an extension of its Temporary General License (TGL), which affords people and companies a limited time use of goods from Huawei and affiliate companies in order to essentially wean them off of Huawei networking equipment. The license, which offers “narrow exceptions” is set to expire 90 days from today.
In a statement provided to the press, Secretary of Commerce Wilbur Ross stated, “As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption. Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License.”
Huawei has, of course, long denied any ties to security or spying accusations from the U.S. government. Recently, stories, including alleged ties to African government spying, have continued to shine a light on concerns about the company’s ties to the Chinese government. Those concerns have led to Huawei’s addition to the entities list, along with U.S. government bans on buying equipment.
Per the DoC:
Huawei was added to the Entity List after the Department concluded that the company is engaged in activities that are contrary to U.S. national security or foreign policy interests, including alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of U.S. sanctions, among other illicit activities.
Losing access to American software and hardware could, in turn, have a devastating impact on the company. Notably, Huawei recently unveiled HarmonyOS. The new mobile operating system is not yet an Android replacement, but is believed by many to be part of a long-term strategy to wean itself off of dependence on Google.
We have reached out to Huawei for comment.