U.S Govt Now Mulling Sanctions On Honor

In the US, the Chinese company Honor is required to be blacklisted by the government. Honor would face severe sanctions for import and export business with the United States.

According to Reuters, a request was made to the US Department of Commerce. The former Huawei unit “Honor Device Co.” according to the will of the group of republicans is to be put on the black trade list, the so-called “Entity List” of the government. Honor had to be sanctioned, it said because the company part was only separated from Huawei and became independent when Huawei was placed on the embargo list of US companies in May 2019. Inclusion on this list prohibits companies from purchasing parts and components from US companies or using American technology without US government approval.

Honor seperated from Huawei for protection

Republican lawmakers argued that Honor was only outsourced to circumvent U.S. export control policies. A spokesman for the US Department of Commerce has already commented on the request in an initial statement. The agency appreciated “the point of view of these members of Congress,” it said. The ministry is working “constantly to check the information available in order to identify possible additions to the ‘Entity List'”. It is still unclear whether a further investigation will be started.

However, the US government had made it clear that the parent company Huawei was seen as a clear threat to national security. The government also announced in 2019 that US technology and software would not be allowed to fall into the hands of the Chinese Communist Party. But that is exactly what they feared if Huawei had not been embargoed.

The Chinese Embassy in Washington, Honor, and Huawei did not immediately respond to requests from Reuters for comment.