Huawei will need a U.S. government license to purchase U.S. technology. The order will come into effect in the coming days.
In a significant development, the U.S. Commerce Department stated it has added China’s Huawei Technologies Co Ltd along with 70 of its affiliates to a “Entity List”, thus placing a ban on the telecom giant to purchase parts and components from U.S. companies without U.S. government approval.
According to U.S. officials, the move is likely to make it difficult if not impossible for Huawei to sell some products because of its reliance on U.S. suppliers.
Because of the order, which will take effect in the coming days, Huawei will need a U.S. government license to purchase U.S. technology.
Huawei did not immediately comment.
According to U.S. commerce secretary Wilbur Ross, the decision will “prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests.”
The move comes midst heightened global concerns that Huawei, is a front for Chinese intelligence and that the Chinese Communist Party can use Huawei’s equipment to conduct corporate, industrial and military espionage.
According to the Commerce Department, the move comes after the U.S. Justice Department unsealed an indictment in January of Huawei and some entities that said the company had conspired to provide prohibited financial services to Iran.
The Commerce Department stated, it has a reasonable basis to conclude that Huawei is “engaged in activities that are contrary to U.S. national security or foreign policy interest.”
Senator Ben Sasse stated “Huawei’s supply chain depends on contracts with American companies”; he has also urged the Commerce Department to look “at how we can effectively disrupt our adversary.”