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US companies are using loophole in trade ban to do business with Huawei

By midian182 · 5 replies
Jun 26, 2019
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  1. According to a report in the New York Times, US companies have generated millions of dollars in sales to Huawei over the last few weeks by shipping components that were manufactured outside of the United States.

    In an earnings call yesterday, Micron CEO Sanjay Mehrotra confirmed that while it had stopped dealing with Huawei following the blacklisting, it had resumed selling certain goods to the firm over the last two weeks after it "determined that we could lawfully resume" some shipments.

    A statement by John Neuffer, president of the Semiconductor Industry Association, suggests the US government has given the okay for non-US-manufactured goods to be sold to Huawei, though some reports say the Trump administration is split over whether to allow the sales.

    “As we have discussed with the U.S. government, it is now clear some items may be supplied to Huawei consistent with the Entity List and applicable regulations. Each company is impacted differently based on their specific products and supply chains, and each company must evaluate how best to conduct its business and remain in compliance,” he wrote.

    The US placed Huawei on the Entity List after years of accusing it of spying at the behest of the Chinese government, but US companies have asked for the ban to be eased as it is harming American organizations.

    Last week saw five more Chinese firms, all involved in the supercomputer industry, added to the blacklist over the machines’ potential military applications.

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,510   +3,898

    No surprise here .... a bunch of goods are being shipped via Vietnam, remarked and delivered to the US.
    p51d007 likes this.
  3. Stormbreaker

    Stormbreaker TS Enthusiast Posts: 16   +33

    Lack of conviction...
    tacobravo likes this.
  4. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,509   +5,073

    Companies found guilty of this should be fined 50% of their profit margin for the whole year.
    psycros and tacobravo like this.
  5. psycros

    psycros TS Evangelist Posts: 2,779   +2,598

    Banning Huawei hasn't harmed any American company in any meaningful way. There are plenty of other suppliers and nearly all of them produce higher quality counterparts to Huawei's cheap copies of western technology. So the US tech leviathans can't use the cheapest unsecure junk and may have to accept marginally smaller profits, which doesn't impact anything but stock price? Cry me a river.
    cliffordcooley likes this.
  6. I don't get it, if the US has a ban shouldn't US companies be heeding US directives and not be trading with those on the Entity List? Finding loop-holes seems to be flagrantly defeating the purpose of the objective.

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