Major security agencies in the United States are debating whether to put HONOR on an export blacklist, according to new reports.
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The agencies are said to be currently debating whether the company poses a threat to US national security and whether it should be banned.
Banning HONOR could have a lot of negative impacts on the already bad relations between the United States and China.
The news was reported by le Washington Post, which says Pentagon and Department of Energy staff are discussing HONOR’s potential to be put on the entity list, while the Commerce Department and State Department were against the move.
The final decision on whether the business is at risk and should be put on the entity list has been shared between staff and departments.
The top Republican of the House of Representatives Committee on Foreign Affairs said that “the same concerns about technology exports to HONOR when it was part of the Huawei Group should apply under its current ownership structure supported by the state ”.
Le Washington Post also reminds us that “Huawei sold HONOR to Shenzen Zhixin New Information Technology Co., a company formed by two state-backed investors linked to the Shenzhen municipal government.”
Some members mentioned that HONOR does not manufacture nuclear material or components, nor sell its devices in the United States, which gives them enough reason not to ban the company and put it on the list. He said it could hurt the US economy more than China.
It’s unclear what will happen to HONOR in the United States and around the world.
If the company were put on the entity list, it would clearly have a huge impact on its business, and it could even shut down entirely, which could hamper innovation and have an even more negative impact on interstate relations. -United and China.
What is the list of entities?
This is a list of companies that are prohibited from doing business with other US companies unless a special request is submitted and approved by the US government.
Huawei has also been put on this list, which prevents it from doing business with most American companies. Even when companies are allowed to do business with a few US companies, there will be a lot of caveats and limitations in place.
Such an example can be demonstrated with Huawei using the latest Snapdragon 888 chips in its P50 series devices. The chip can support 5G technology by default, however, Huawei’s P50 devices are limited to using only 4G.
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