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US includes Huawei India in its export control entity list.


Date: 21-05-2020
Subject: US includes Huawei India in its export control entity list
WASHINGTON: The US has included Chinese tech giant Huawei's India unit and other foreign subsidiaries in its export control entity list to prevent the telecom company from doing business in America, days after the Trump administration imposed new restrictions on the firm's ability to use American technology.

The Trump administration in recent months has increased its action against Huawei, China's first global tech brand and a maker of network equipment and smartphones, preventing it from doing business in the US, as it believes the company known for its technological advancement in 5G is being used by the Chinese leadership to serve their interest.

The Trump administration says Huawei is a security risk, which the company denies, and is trying to persuade European and other allies to shun its technology for the next-generation telecom networks.

China has accused the US of raising phony security concerns to hurt a rising competitor to American tech companies.

Huawei and its non-US affiliates have been added to the entity list, because "they pose a significant risk of involvement in activities contrary to the national security or foreign policy interests of the United States", said a notification issued in the Federal Register on Tuesday.

The Indian entity listed in the notification is Huawei Technologies India Private Limited. The US government last week imposed new restrictions on Huawei's ability to use American technology, stepping up a conflict with Beijing over industry development and security.

Commerce Secretary Wilbur Ross said Friday that Washington wants to prevent Huawei from evading sanctions imposed earlier on its use of American technology to design and produce semiconductors abroad.

“Huawei is an untrustworthy vendor and a tool of the Chinese Communist Party, beholden to its orders,” the State Department said in a statement last week.

The Department of Justice has indicted Huawei for stealing US technology and helping Iran evade sanctions, and the Department of Commerce placed Huawei on the Entity List in 2019.

“The Department of State has engaged for more than a year to share what we know about Huawei and other untrustworthy vendors with allies and partners around the world,” it said.

The expansion of entities list and its other affiliates, the State Department said, helps prevent Huawei from undermining US export controls, closing a loophole that has allowed the company to exploit US technology and threaten our national security.

It also imposes US export control restrictions on countries that use US technology or software to design and produce semiconductors for Huawei.

Companies wishing to sell certain items to Huawei produced with US technology must now obtain a license from the United States, it said.

“The US will continue to restrict most US exports to Huawei and its affiliates on the Entity List for activities that threaten US national security and international stability,” the State Department said.

Source:- economictimes.indiatimes.com

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