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More Sanctions On Huawei By US

huawei aug18 lt

Another 38 non-U.S. affiliates of Chinese tech major Huawei Technologies across 21 countries have been added to the Entity List, which denies them access to U.S. technology, according to statement by the U.S. Bureau of Industry and Security (BIS) in the Department of Commerce.

This move further restricts the access by Huawei to items produced domestically and abroad from U.S. technology and software. It imposes a license requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing Huawei Entity List entries.

These affiliates present a significant risk of acting on Huawei's behalf contrary to the national security or foreign policy interests of the U.S., the BIS added.

The Trump administration blacklisted Huawei in May 2019 on national security grounds, with the ban primarily aimed at keeping equipment made by the Chinese company out of the 5G network in the U.S.

At the same time, the U.S. Commerce Department added Huawei to its "Entity List," which banned the Chinese company from buying components and technology from American firms without prior approval from the U.S. government.

In the same month, the Commerce Department also temporarily eased some restrictions imposed on Huawei in order to minimize disruption for the Chinese company's customers. The temporary reprieve was extended multiple times since then and was in effect until recently. The Temporary General License (TGL) has expired on August 13.

Meanwhile, Huawei has until now been circumventing U.S. export controls with the help of third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. The latest sanctions are expected to plug these holes.

The BIS stated that 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.

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

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