U.S. clamps down on Huawei’s efforts to ‘circumvent’ export rules

Commerce added another 38 Huawei affiliates across 21 countries to its Entity List. (Pixabay)

Today, the U.S. Department of Commerce further put the screws to Huawei, saying no company that is subject to Commerce export-control jurisdiction may deal with Huawei or any other company on Commerce’s Entity List. And Commerce added another 38 Huawei affiliates across 21 countries to its Entity List.

Commerce said the further restrictions were necessary to “prevent Huawei’s attempts to circumvent U.S. export controls.” It said the 38 affiliates were “acting on Huawei’s behalf contrary to the national security or foreign policy interests of the United States.”

The 38 companies include such names as Huawei Cloud Argentina; Huawei Cloud Brazil; Huawei Cloud France; Huawei Cloud Berlin; Huawei Cloud Mexico, etc.

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“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from U.S. software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross in a statement today. “As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”

Commerce’s goal is to prevent any company on its Entity List to act “as a purchaser, intermediate, or end user.”

The Bureau of Industry and Security within the Commerce Department first added Huawei and 70 of its affiliates to its Entity List in May 2019. The Entity List effectively banned the Chinese vendor from buying components from U.S. companies without government approval.

RELATED: Industry Voices—Madden: Huawei gut-punched into survival mode

Then in May 2020, Commerce further tightened its restrictions on Huawei by preventing it from purchasing semiconductors that use U.S.-based design tools, fabrication equipment or software.

Today’s action goes one step further to prevent Huawei from evading the restrictions imposed by the Entity List.

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