A group of Republican Congressmen has written a letter to the US Commerce Department requesting that former Huawei subsidiary, Honor Device Co. be included in the US government’s Entity List.
The group is led by ranking Congressman, Representative Michael McCaul, and claims that Honor was spurned off by Huawei in 2020 to evade the stringent sanctions that were slapped on the parent company Huawei, in 2019. The Congressmen stated that Honor is already accessing chip and software supplies from American suppliers, which would not have happened if Huawei did not divest from Honor in 2020. There are still suspicions that Honor is still state-owned even though a consortium of 30 investors bought the company from Huawei last year.
A Commerce Department spokesperson, in responding to the letter, said that the Commerce Department appreciates the perspectives of the House Republicans. He noted that the Commerce Department is continually reviewing available information to identify potential additions to the Entity List.
Huawei came under the hammer in 2019, as it was blacklisted from accessing chip and software solutions from US companies. The sanctions virtually ground Huawei’s global operations to halt. The recently released half-year financial report of Huawei reflected massive declines across several segments of its operations.
Huawei divested from Honor in 2020 when it was sold to a group of investors. It is believed that the US claim of Huawei being a front for the Chinese government, may also apply to Honor.
Huawei seems to have weathered the blacklisting well with a new business focused on having a software pivot that makes the company able to withstand shocks in the future, as well as diversify.
It remains to be seen what the outcome of the letter would be. An official statement from any of the parties is yet to be released.
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(source)
