More trade action will be taken against Huawei if needed: U.S. Commerce Secretary Gina Raimondo

In a statement U.S. Commerce Secretary Gina Raimondo said, if necessary the Biden Administration will take further action against China’s Huawei.

Washington continues to see the Chinese tech company as a national security threat on a variety of grounds and is lobbying with other countries to not use Huawei’s equipment for developing their 5G networks.

Citing Huawei’s ties to the Chinese military as well as the Chinese government, the United States said these ties make the company susceptible to “Chinese governmental pressure to participate in espionage.”

In May 2019, the Trump Administration added Huawei to the U.S. Entity List.

The list “is a really powerful tool in our toolbox, and we will use it to the fullest extent possible to protect American national security,” said Raimondo while adding, “Will we do more? If we need to, yes.”

Huawei declined to comment on Raimondo’s remarks.

In November 2020, Huawei stated it was selling its budget brand smartphone unit, Honor Device Co, to a consortium of over 30 agents and dealers. 

Last month, US lawmakers asked the US Commerce Department to add Honor to the Entity List.

Honor was spun off “to evade U.S. export control policies,” said US lawmakers citing 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.”

Although Raimondo did not specifically state whether Honor was added to the trade ban list, she mentioned that other companies have been added to the Entity List.

Earlier this year in June, five Chinese companies were added to the Entity List, after it was found that they were involved with the forced labor of Uyghurs and other Muslim minority groups in Xinjiang where China holds them in modern concentration camps.

“We’re continuing to work on our export controls,” said Raimondo.

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