The US government further restricted Huawei Technologies (Huawei) and its non-US affiliates from the entity list to items produced domestically and abroad from US technology and software.
The measure was taken by the Bureau of Industry and Security (BIS, for its acronym in English) of the Department of Commerce.
In general, the United States has strengthened technology transfer to China by scrutinizing academic exchanges and strengthening the review of foreign investment and export control authorities.
The Justice Department has strengthened law enforcement to counter the theft of US technology and know-how by China.
In addition, according to an analysis by the US Congress, since May 2019, the Administration has tightened control over dual-use exports to the Chinese telecommunications company Huawei, has restricted the use of universal funds to buy Huawei equipment and has tried to deter foreign governments from using this company‘s products on their 5G networks.
BIS added 38 other Huawei affiliates to the entity list, imposing a licensing requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing entries in the list of entities. Huawei entities.
BIS also imposed licensing requirements on any transaction involving items subject to the export control jurisdiction of the Department of Commerce where a part of the entity list is involved, such as when Huawei (or other entities on the entity list) acts as buyer, intermediate or end user.
“These actions, effective immediately, prevent Huawei’s attempts to bypass US export controls to obtain electronic components developed or produced with US technology,” the Commerce Department said.
Huawei’s 38 new subsidiaries in 21 countries were added to the list of entities because they pose a significant risk of acting on behalf of Huawei against the national security or foreign policy interests of the United States, according to the Commerce Department.
There are reasonable grounds, he added, to believe that Huawei would otherwise seek to use them to evade the restrictions imposed by the entity list.
The subsidiaries are: Huawei Cloud Computing Technology; Huawei Cloud Beijing; Huawei Cloud Dalian; Huawei Cloud Guangzhou; Huawei Cloud Guiyang; Huawei Cloud Hong Kong; Huawei Cloud Shanghai; Huawei Cloud Shenzhen; Huawei OpenLab Suzhou; Wulanchabu Huawei cloud computing technology; Huawei Cloud Argentina; Huawei Cloud Brazil; Huawei Cloud Chile; Huawei OpenLab Cairo; Huawei Cloud France; Huawei OpenLab Paris; Huawei Cloud Berlin; Huawei OpenLab Munich; Huawei Technologies Dusseldorf GmbH; Huawei OpenLab Delhi; Toga Networks; Huawei Cloud Mexico; Huawei OpenLab Mexico City; Huawei Technologies Morocco; Huawei Cloud Netherlands; Huawei Cloud Peru; Huawei Cloud Russia; Huawei OpenLab Moscow; Huawei Cloud Singapore; Huawei OpenLab Singapore; Huawei Cloud South Africa; Huawei OpenLab Johannesburg; Huawei Cloud Switzerland; Huawei Cloud Thailand; Huawei OpenLab Bangkok; Huawei OpenLab Istanbul; Huawei OpenLab Dubai; and Huawei Technologies R&D UK
In a concurrent rule, BIS reviewed the entity list to require a license when a party in the entity list acts as a buyer, intermediate recipient, end recipient, or end user of an EAR transaction.
This aligns with the additional restrictions imposed in the FDP reviews, when any of the Huawei entities on the Entity List are part of the transaction, for example, acting as a buyer, intermediate recipient, end recipient or end user.