In another major blow to Huawei, the US government has banned the Chinese companies overseas subsidiaries from doing business with the US. The US Department of Commerce has included Huawei India along with its other foreign subsidiaries in its Entity List.
The government has revealed that it is putting all the foreign subsidiaries in the Entity List. This includes Huawei India as well along with different Huawei companies present in the rest of the world. This includes Argentina, Australia, Bahrain, Belarus, Belgium, Brazil, Canada, Chile, China, Denmark, Egypt, Cuba, Costa Rica, France, Germany, Hong Kong, Indonesia, Italy, Jamaica, Japan and more.
“Despite the Entity List actions the Department took last year, Huawei and its foreign affiliates have stepped-up efforts to undermine these national security-based restrictions through an indigenization effort. However, that effort is still dependent on U.S. technologies,” said Secretary of Commerce Wilbur Ross. “This is not how a responsible global corporate citizen behaves. We must amend our rules exploited by Huawei and HiSilicon and prevent U.S. technologies from enabling malign activities contrary to U.S. national security and foreign policy interests,” he further added.
The government has further revealed that it will impose US export control restrictions on countries that use US technology or software to design and produce semiconductors for Huawei The government has already ordered companies wishing to sell certain items to Huawei produced with U.S. technology must obtain a license from the United States. “The United States will continue to restrict most U.S. exports to Huawei and its affiliates on the Entity List for activities that threaten U.S. national security and international stability,” the order noted.