US extends restrictions on Huawei, bans 38 more affiliates

*Commerce Department adds 38 Huawei affiliates to banned entity list

*Chinese telecom giant using ‘evasive measures’ to circumvent its original blacklisting ─Officials allege

Isola Moses | ConsumerConnect

The United States (US) Commerce Department has announced that it is placing stricter trade restrictions on Huawei.

Agency report indicates that the government will be expanding restrictions imposed in May that prevents the Chinese telecom giant from obtaining semiconductors without a special license.

Commerce Secretary Wilbur Ross told Fox Business that the original rules left open a loophole that allowed Huawei to go through third parties, or use other “evasive measures,” such as using commercially available products.

Ross stated: “The new rule makes it clear that any use of American software or American fabrication equipment is banned and requires a licence.”

Likewise, Secretary of State Mike Pompeo, in a statement Monday said: “Huawei has continuously tried to evade” US restrictions imposed in May 2020.

The Department has now added 38 Huawei affiliates to the nation’s banned entity list, report stated.

Pompeo said: “The Trump Administration sees Huawei for what it is – an arm of the Chinese Communist Party’s (CCP’s) surveillance state – and we have taken action accordingly.

“We will not tolerate efforts by the CCP to undermine the privacy of our citizens, our businesses’ intellectual property, or the integrity of next-generation networks worldwide.”

The statement added: “We are backing up our words with actions across the US Government.

“The Department of Justice has indicted Huawei for stealing US technology, conspiracy, wire fraud, bank fraud, racketeering, and helping Iran to evade sanctions, among other charges.”

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