Huawei

Huawei and affiliates in UK, Europe and Asia added to US Entity List

20 August 2020 | Melanie Mingas

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The US Department of Commerce has added Huawei to the country’s Entity List, restricting the firm’s access to items produced domestically and abroad from US technology and software.

The Entity List identifies entities “reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States”.

Supporting this latest development in the ongoing saga, the Bureau of Industry and Security (BIS) added a further 38 non-US affiliates of Huawei from 21 countries, including the UK, UAE, Germany, Switzerland, France, Egypt, India and Singapore, to prevent the company from bypassing its latest block via third parties.

Commerce secretary, Wilbur Ross, said: “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 fulfil the policy objectives of the Chinese Communist Party.

“As we have restricted its access to US technology, Huawei and its affiliates have worked through third parties to harness US technology in a manner that undermines US national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so,” Ross added.

This amendment further restricts Huawei from obtaining foreign made chips developed or produced from US software or technology to the same degree as comparable US chips.

The list read:

Huawei Cloud Computing Technology;

Huawei Cloud Beijing;

Huawei Cloud Dalian;

Huawei Cloud Guangzhou;

Huawei Cloud Guiyang;

Huawei Cloud Hong Kong;

Huawei Cloud Shanghai;

Huawei Cloud Shenzhen;

Huawei OpenLab Suzhou;

Wulanchabu Huawei Cloud Computing Technology;

Huawei Cloud Argentina;

Huawei Cloud Brazil;

Huawei Cloud Chile;

Huawei OpenLab Cairo;

Huawei Cloud France;

Huawei OpenLab Paris;

Huawei Cloud Berlin;

Huawei OpenLab Munich;

Huawei Technologies Dusseldorf GmbH;

Huawei OpenLab Delhi;

Toga Networks;

Huawei Cloud Mexico;

Huawei OpenLab Mexico City;

Huawei Technologies Morocco;

Huawei Cloud Netherlands;

Huawei Cloud Peru;

Huawei Cloud Russia;

Huawei OpenLab Moscow;

Huawei Cloud Singapore;

Huawei OpenLab Singapore;

Huawei Cloud South Africa;

Huawei OpenLab Johannesburg;

Huawei Cloud Switzerland;

Huawei Cloud Thailand;

Huawei OpenLab Bangkok;

Huawei OpenLab Istanbul;

Huawei OpenLab Dubai;

Huawei Technologies R&D UK

 

BIS also imposed a license requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing Huawei Entity List entries.

The license requirements apply to any transaction involving items subject to Commerce export control jurisdiction where a party on the Entity List is involved – such as when Huawei or others named on the Entity List act as a purchaser, intermediate, or end user.

BIS said these actions are expected to “completely prevent Huawei’s attempts to circumvent US export controls” to obtain electronic components developed or produced using US technology. 

Although the US has repeatedly disputed Huawei’s independence, claiming the firm could aid Chinese state espionage as far back as 2012, only now has the Commerce Department placed further restrictions on the firm and its associated enterprises.

In September last year, 28 Chinese entities were added to the list, for “acting contrary to the foreign policy interests of the United States” and in July this year, another 11 entities were added on human rights grounds. 

A series of moves against the company over the last two years, saw Huawei’s growth halve from 23.2% to 13.1% in the first half of this year.

In May, the US extended an earlier ban on Huawei using chips with US patents, a move the company said would take months to assess the impact of.

Since then, the UK has made it illegal to buy equipment from the vendor.