Trump Admin To Grant Temporary Pardon To Previously Sanctioned Chinese Tech Giant
Commerce Secretary Wilbur Ross on Monday announced a reprieve to the Chinese tech giant Huawei Technologies during a Monday appearance on Fox Business.
The reprieve will allow the tech giant to continue to purchase materials from the United States for another three months, Ross explained.
“It is another 90 days for the U.S. telecom companies. Some of the rural companies are dependent on Huawei. So we’re giving them a little more time to wean themselves off. But no specific licenses are being granted for anything,” Ross said.
President Donald Trump’s administration placed sanctions on Huawei that banned the company from using U.S.-made materials for its products in May due to national security concerns after the Department of Justice charged the company for bank fraud, wire fraud and violating Iran sanctions.
Ross further explained that the U.S. sanctions against the tech giant are now set to be implemented in November. (RELATED:
The Commerce Department is adding 46 Huawei subsidiaries to the United States’ entity list — which includes a number of entities American companies cannot sell to unless they get a specific license — to make it more difficult of Huawei to evade those sanctions.
“It’s under legislation, and its purpose is to make sure that we don’t endanger U.S. security,” Ross said. “The president, yesterday in his news conferences, made clear his concerns about national security in Huawei. Adding more entities makes it for difficult for Huawei to get around the sanctions.”
Breaking news- Confirmed. @CommerceGov Secy wilbur ROSS just confirmed the US is extending #Huawei deadline while also adding 46 subsidiaries to the "entity list" @MorningsMaria @FoxBusiness "nov19th new deadline for us CO's to stop selling to huawei. pic.twitter.com/401npSsDoz
— Maria Bartiromo (@MariaBartiromo) August 19, 2019
“Technically, Huawei says they’re a privately owned company, but under Chinese law, even private companies are required to cooperate with the military and with the Chinese intelligence agencies, and they’re also required not to disclose that they are doing so. So it’s a big problem,” Ross added.
He further explained that Huawei poses a threat to national security because its 5G-capable smartphones do not separate “core activities,” or activities that take place within the network’s most critical controls and sensitive information is stored, from “peripheral ones,” or activity that takes place within the network’s masts, antennas and other passive equipment, according to Reuters.
“The real problem with Huawei is in connection with the 5G because 5G, being somewhat software driven, [is] very hard to separate core activities from peripheral ones. … It becomes of greater and greater concern,” he said.
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