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HomeNewsCaribbean NewsCommerce Department further restricts Huawei access to US technology

Commerce Department further restricts Huawei access to US technology

By Caribbean News Global fav

WASHINGTON, USA – The Bureau of Industry and Security (BIS) in the Department of Commerce, Monday, August 17, further restricted access by Huawei Technologies (Huawei) and its non-US affiliates on the Entity List to items produced domestically and abroad from US technology and software. In addition, BIS added another 38 Huawei affiliates to the Entity List, which imposes a license requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing Huawei Entity List entries.

“Today, we dealt a direct blow to Huawei and the repressive Chinese Communist Party by further limiting Huawei’s ability to acquire US technology and compromise the integrity of the world’s networks and Americans’ private information,” Secretary of State Michael Pompeo tweeted.

BIS also imposed license requirements on any transaction involving items subject to Commerce export control jurisdiction where a party on the Entity List is involved, such as when Huawei (or other Entity List entities) acts as a purchaser, intermediate, or end-user. These actions, effective immediately, prevent Huawei’s attempts to circumvent US export controls to obtain electronic components developed or produced using US technology.

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The amendment further refines the FDP rule by applying the control to transactions: 1) where US software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any Huawei entity on the Entity List; or 2) when any Huawei entity on the Entity List is a party to such a transaction, such as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”

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.

“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from US software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross. “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.”

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