International Bans on Huawei Increasing

International Bans on Huawei

International bans on Huawei technologies are increasing in the midst of rapidly changing world opinion.  The United States has long held that Huawei products are a threat to information security.  Now the United Kingdom and members of the European Union are voicing those concerns as well.  Because Huawei is a leader in emerging 5G technologies this is of great concern. 

Possible U.S. Ban on Huawei to Take Effect in August 2020

Legislation passed in 2019 is due to take effect August 13, 2020.  While congressional is considering amendments to the Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment, the core principles of the legislation are expected to remain intact.  The implementation of the rule will not likely be postponed according to a publication of the interim ruling, .  This rule will prohibit the awarding or renewing of federal contracts to contractors using telecommunication equipment produced by Huawei Technologies Company, ZTE Corporation, or any subsidiary or affiliate. 

Previous Huawei Rulings in the U.S.

The Bureau of Science and Industry (BIS) restricted Huawei’s semiconductor manufacturing capabilities in May of 2020.  BIS took this action to prevent the company from acquiring semiconductors that are the direct product of U.S. technologies and software.  These technologies now fall under the Export Authorization Regulations (EAR).  In other news, the Department of Justice is prosecuting a case against the company for participation in a fraudulent scheme to export banned U.S. goods and technologies for its business in Iran.

Global Reactions to China’s Continued Malicious Behaviors

Because of a growing awareness of China’s history of cybercrime and information theft attitudes are changing in the international community .  The country’s handling of the Covid pandemic, the Hong Kong crackdown, and the repression of ethnic Uighurs have contributed to this awakening. 

There has been growing political pressure in recent months the United Kingdom  moved to remove Huawei devices from the country.  While France has stated that it will not totally ban the company’s 5G products, it is encouraging operators not to use them.  Australia, Canada, New Zealand, and Vietnam have declared that Huawei equipment poses a “significant security threat”.  Poland arrested a Huawei employee for spying.  Because of this, it has asked the EU to develop a joint stance against Huawei.

China has an extremely centralized government.  It is therefore impossible to separate the actions of the country with the actions of its corporations.  On July 13, 2020 Reuters reported that there was broad support in the European Union (EU) in response to new security laws in Hong Kong.

CVG Strategy

International bans on Huawei are but one development in a complex business world.  As a result, businesses will continue to be faced with a changes in regulations.  Additionally, cyberthreats to vital information are increasing in volume and complexity.  CVG Strategy is committed to helping businesses with export compliance and cybersecurity.    We are here to assist you establish Export Compliance Programs and Information Security Management Systems that will keep your business running strong.  Contact us to see how we can help.

Kevin Gholston

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