US blacklist Archives - Gizmochina

Beijing condemns US for blacklisting Chinese Firms over support to Russia’s Military

Joane — Mon, 09 Oct 2023 21:56:07 +0000

In a significant move, the US Commerce Department has added 42 Chinese companies to its export blacklist, accusing them of aiding Russia’s military and defense industrial base amidst the ongoing conflict in Ukraine. The companies, including semiconductor players in Hong Kong and mainland China, allegedly supplied US-origin integrated circuits to importers associated with the Russian military sector after March 1, 2023.

The microelectronics in question are crucial for Russia’s precision guidance systems in missiles and drones, which have been deployed against civilian targets in Ukraine. The Commerce Department’s action reflects its determination to halt the flow of US-origin items to Russia’s military, emphasizing the gravity of the situation.

Apart from the 42 Chinese entities, seven other companies from Britain, Estonia, Finland, Germany, India, Turkey, and the United Arab Emirates also found themselves on the US export control list. These additions underscore the global implications of the conflict and the collaborative efforts to curb support for Russia’s military activities.

The move by the US drew swift condemnation from Beijing, which vehemently opposed the decision, labeling it as “a typical act of economic coercion and unilateral bullying.” The Chinese Ministry of Commerce criticized the US for abusing export control measures, urging an immediate correction of these practices and an end to the unjust suppression of Chinese companies. China declared its intent to take all necessary measures to defend the legitimate rights and interests of its firms affected by the blacklist.

The US decision reflects a broader international effort to prevent the proliferation of advanced precision-guided weapons systems. The situation highlights the intricate challenges faced by nations in balancing economic interests and national security concerns in the face of global conflicts.

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Huawei & SMIC suppliers granted licenses worth billions for US goods

Sean — Fri, 22 Oct 2021 11:30:15 +0000

Suppliers of Huawei and SMIC have been granted billions of dollars worth of licenses from November through April to sell these firms goods and technology despite both brands being in the trade blacklist in the US.

According to Reuters, documents released by Congress showed earlier this week that 113 export licenses worth 61 billion US Dollars were approved for suppliers to ship products to the Chinese telecom giant along with another 188 licenses that are worth nearly 42 billion US Dollars were approved for China’s major chipmaker SMIC (Semiconductor Manufacturing International Corp). The data also revealed that more than 9 out of 10 license applications were granted to SMIC suppliers, while around 69 percent of requests were granted to ship to Huawei.

The US House of Representatives Foreign Affairs committee voted to grant a request to release the licensing data that was received from the Commerce Department back in May. These numbers have led to an outcry in Washington that are against these Chinese firms receiving access to advanced US made technologies. Republican Senator Marco Rubio told Reuters that President Joe Biden needs to explain the reason behind these companies continuing to receive “waivers.”

The government official added that “It is just another example of President Biden not taking the economic and security threat posed by the Chinese Communist Party seriously.” Meanwhile top Republican member Michael McCaul said that “It’s clearly in our national interest to increase transparency and public scrutiny on how our nation transfers its technology to an adversary.”

US Senator urges Biden administration to blacklist Honor similar to Huawei

Sean — Fri, 15 Oct 2021 08:36:07 +0000

Earlier this week, Republican Senators led by Marco Rubia urged the Biden administration to blacklist Honor, which is a former subsidiary of the Chinese tech giant Huawei that had had previously been designated as a national security threat.

According to an SCMP report, the US Senators sent a letter to the Biden administration on 14th October 2021. In this letter, Honor was described as an entity that is an “arm” of the Chinese government. The letter further added that the Chinese smartphone maker also has access to the US technologies that is currently being denied to its former parent brand, Huawei. In other words, the Senators are seeking to blacklist the company in a similar fashion.

Rubio wrote that spinning off Honor has let Beijing “effectively dodged a critical American export control.” For those unaware, Huawei had sold off its budget sub brand back in November 2020 to ensure its survival. The letter also stated that “By failing to act in response, the Department of Commerce risks setting a dangerous precedent and communicating to adversaries that we lack the capacity or willpower to punish blatant financial engineering by an authoritarian regime.”

Unfortunately, Honor as well as the US Commerce Department and the Chinese Embassy in Washington has yet to respond to requests for a comment regarding this matter at the moment. Huawei has also declined to provide any comments, but pointed to a previous statement in which it assured that it would not hold any shares or will be involved in managing Honor in any manner.

Some US Republican Congressmen push for blacklisting of Honor just like Huawei

Jed John Ikoba — Sun, 08 Aug 2021 16:48:16 +0000

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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