If the company is included in the list, it will not be able to work with American partners.
In November 2020, Huawei sold the Honor sub-brand to industrial partners to save it from US sanctions. It seemed that it worked — the company released smartphones of the 50 series and Magic 3 with processors from Qualcomm and Google services.
However, the government has nevertheless started adding Honor to the” black ” list of organizations (Entity List) that are prohibited from working with American companies and using appropriate technologies, The Washington Post reports.
Four federal agencies are involved in the decision. The Pentagon and the Department of Energy voted for inclusion in the list, and the Department of Commerce and the State Department believe that this is not necessary. The final word remains with President Joe Biden.
“We are using all available methods, including export controls, to deter attempts by China and other countries to use technologies that could harm the national security and foreign policy interests of the United States,” said Brittany Kaplin, a representative of the Ministry of Commerce.
Judging by the example of Huawei, the sanctions will have a negative impact on Honor. On the other hand, the company does not do business in the United States and does not have a division for the production of 5G equipment, so they are questionable from a legal point of view.
In May, Xiaomi appealed a similar decision through the court, achieving exclusion from the” black ” list and lifting all financial restrictions.