US Republicans want former Huawei unit Honor Device Co added to economic blacklist
- The group of 14 politicians noted in a letter that Honor was divested from Huawei, which was added to the US Entity List in May 2019
- Huawei in November 2020 said it was selling its budget brand smartphone unit, Honor, to a consortium of more than 30 agents and dealers
A group of 14 Republican politicians in the US House of Representatives on Friday asked the US Commerce Department to add former Huawei unit Honor Device Co to the government’s economic blacklist.
The politicians led by Republican Michael McCaul, the ranking member of the House Foreign Affairs Committee, noted in a letter that Honor was divested from Huawei Technologies Co, which was added to the US Entity List in May 2019. Being added to that list bans companies from buying parts and components from US companies or using American technology without US government approval.
The Republican politicians argued that Honor was spun off “in an effort to evade US export control policies meant to keep US technology and software out of the hands of the Chinese Communist Party (CCP)”.
The letter cited analysts saying that “selling Honor gave it access to the semiconductor chips and software it relied on and would have presumably been blocked had the divestiture not gone through”.
A US Commerce Department spokesman said the agency appreciates “the perspective of these members of Congress”. He noted the department “is continually reviewing available information to identify potential additions to the Entity List”.
The Chinese embassy in Washington, Honor and Huawei did not immediately respond to requests for comment.
Huawei in November 2020 said it was selling its budget brand smartphone unit, Honor, to a consortium of more than 30 agents and dealers.
