Huawei opposes US decision to blacklist more affiliates

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Huawei has hit back at the US Department of Commerce’s decision to add 46 of its affiliates to a blacklist known as the “entity list”.

This after the department’s Bureau of Industry and Security (BIS) identified 46 additional Huawei Technologies affiliates that require inclusion on the list, as part of a routine review of all entity listings.

Since May, the department has added over a hundred persons or organisations to the list in connection to Huawei.

BIS also announced it will extend the temporary general licence (TGL) authorising specific, limited engagements in transactions involving the export, re-export and transfer of items – under the Export Administration Regulations (EAR) – to Huawei and its non-US affiliates which are subject to the list.

The department says the continuation of the TGL is intended to afford consumers across America the necessary time to transition away from Huawei equipment, given the persistent national security and foreign policy threat. This licence is effective an additional 90 days after 19 August.

“As we continue to urge consumers to transition away from Huawei’s products, we recognise more time is necessary to prevent any disruption,” says secretary of commerce Wilbur Ross.

“Simultaneously, we are constantly working at the department to ensure any exports to Huawei and its affiliates do not violate the terms of the entity listing or TGL.”

Outside of the scope of the TGL, the department says any exports, re-exports, or in-country transfers of items subject to the EAR will continue to require a licence granted after a review by BIS under a presumption of denial.

It notes Huawei was added to the list after the department concluded the company is engaged in activities that are contrary to US 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 US sanctions, among other illicit activities.

The BIS’s mission is to advance US national security and foreign policy objectives by ensuring an effective export control and treaty compliance system and promoting continued US strategic technology leadership.

It adds BIS is committed to preventing US-origin items from supporting weapons of mass destruction projects, terrorism, or destabilising military modernisation programmes.

In response, Huawei says: “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.”

The Chinese telecommunications company notes 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 company notes the extension of the TGL does not change the fact that Huawei has been treated unjustly.

“The decision won’t have a substantial impact on Huawei’s business either way. We will continue to focus on developing the best possible products and providing the best possible services to our customers around the world.”

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