Following the tightening of restrictions on China’s Huawei, the US BIS (Bureau of Industry and Security) on Monday announced that it will ban 38 companies all directly associated with Huawei across 21 countries. The move comes after the Trump administration has found it necessary to starve Huawei of all essential components by cutting off all access to U.S technology. It was found that Huawei has been able to purchase American components through third-party companies despite the ban imposed on them.
“We don’t want their equipment in the United States because they spy on us,” said Donal Trump according to Fox News.
According to a press release by the Department of Commerce, the affiliate companies in the list of entities to block are branches of Huawei that operate outside of China as well as some Research & Development centers across Europe.
US Commerce Secretary Wilbur Ross also said that Huawei and its affiliates have been working through third parties in a way that undermines US national security and foreign policy interests. This action would, therefore, demonstrate the US’s commitment to obstruct them from doing so.
This action has repercussions on Huawei especially on its cloud computing since they would no longer be able to buy chips from American companies which are essential for its functioning.
US Secretary of State, Mike Pompeo had earlier said in his statement as to how they would be working to tighten restrictions on Huawei’s access to US company technology.
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