In a bid to move more Huawei subsidiaries into its Entity List, the US Department of Commerce has now flagged Huawei India as well. This arrives after the Trump administration cut off chip supplies from TSMC to Huawei and is a move to pressure the Chinese group further.
In recent weeks, the trade dispute between the US and China have risen again, despite the ongoing Coronavirus pandemic affecting both nations. The former had often accused Huawei Technologies of being a front for the Chinese government and alleged espionage, which the latter and the consumer electronics vendor denied on numerous occasions. Now, Huawei and more of its affiliates based out of the US have been added to the Entity List, where they face a trade ban.
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For those unaware, the Entity List by the US Commerce Department is essentially a blacklist that bans companies or organizations found in the list to interact with US based companies. In other words, cutting off trade, technology, collaboration, and more. According to the US, “Huawei is an untrustworthy vendor and a tool of the Chinese Communist Party, beholden to its orders.”
Thus, even Huawei Technologies India Private Limited has been added to the list. The US State Department stated that they have “engaged for more than a year to share what we know about Huawei and other untrustworthy vendors with allies and partners around the world.” So by banning the Chinese group, the country is effectively cutting off any “loopholes” that Huawei was using to exploit US technology and threaten national security.
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(Via)
