U.S. Commerce Secretary Gina Raimondo said on Thursday the Biden administration will take further action against Chinese telecoms firm Huawei (HWT.UL) if necessary, after some Republican lawmakers have pressed for more steps.
Washington says Huawei is a national security threat on a variety of grounds and aggressively lobbied other countries not to use Huawei equipment in next-generation 5G networks. Citing Huawei’s ties to the Chinese government and military, Washington says this makes the company susceptible to "Chinese governmental pressure to participate in espionage.
Former President Donald Trump's administration added Huawei to the U.S. Entity List in May 2019. Raimondo said the list "is a really powerful tool in our toolbox, and we will use it to the fullest extent possible to protect American national security."Huawei in November 2020 said it was selling its budget brand smartphone unit, Honor Device Co, to a consortium of over 30 agents and dealers.
Last month, a group of 14 Republican lawmakers in the U.S. House of Representatives asked the Commerce Department to add Honor to the Entity ListThe Republican lawmakers said Honor was spun off "to evade U.S. export control policies." The letter cited analysts saying that "selling Honor gave it access to the semiconductor chips and software it relied on and would have presumably been blocked had the divestiture not gone through.
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