US adds 46 new Huawei affiliates to its export blacklist

The US Department of Commerce has announced on Monday that it is adding 46 new Huawei affiliates to its export blacklist. The department said its Bureau of Industry and Security (BIS) has identified 46 additional Huawei Technologies Co., Ltd. affiliates that require inclusion on the Entity List. The decision has been taken as part of a routine review of all Entity Listings. The Entity List includes the names of foreign persons, government organizations and companies that are subject to specific license requirements for the export of certain items.

Since May, the Department has added over one hundred persons or organizations to the Entity List in connection to Huawei. The new restrictions on these affiliates are effective today, August 19th.

Meanwhile, BIS is also extending the Temporary General License (TGL) that will allow a limited engagement in the transaction with Huawei and its non-U.S. affiliates which are subject to the Entity List. This license is also effective from today and will last for 90 more days.

Secretary of Commerce Wilbur Ross said, "As we continue to urge consumers to transition away from Huawei's products, we recognize that more time is necessary to prevent any disruption. Simultaneously, we are constantly working at the Department to ensure that any exports to Huawei and its affiliates do not violate the terms of the Entity Listing or Temporary General License."

Huawei was added to the Entity List after the Department concluded that the company is engaged in activities that are contrary to U.S. national security or foreign policy interests. It included the alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of U.S. sanctions, among other illicit activities.

Huawei is the number two global smartphone vendor and is considered the world leader in fast fifth-generation or 5G equipment, but is hampered by lack of access to key hardware and software, including smartphone chips.