Trade restrictions banning the export of U.S. technology to Huawei, a Chinese telecom company with ties to the communist government, remain in place under the Biden administration although Congress and congressional commerce committee staff have recently cited concerns with enforcement.
Huawei was added to the Entity List effective May 2019, cited as a security threat by the Trump administration. Issued by the Commerce Department's Bureau of Industry and Security, this lists people and companies that are subject to specific license requirements for certain trade activities, including those that have been deemed national security threats to the United States.
This decision came after determining "a reasonable basis to conclude that Huawei is engaged in activities contrary to U.S. national security or foreign policy interests, and its non-U.S. affiliates pose a significant risk of involvement in activities contrary to the national security of the United States."
The Biden administration has maintained Huawei on the Entity List, though Commerce Committee minority staff released a report last month alleging Seagate had violated the trade restrictions.
"Evidence suggests that Seagate Technology, a California-based company, continued shipping hard disk drives to Huawei after the rule went into effect,” the committee wrote in their report.
Following its release, Sen. Roger Wicker (R-Miss.), ranking minority member of the Senate Commerce Committee, and other senators wrote U.S. Secretary of Commerce Gina Raimondo with concerns that were raised in the report.
"The Commerce Department’s lax enforcement of this rule has the effect of incentivizing other tech-focused companies throughout the supply chain to jeopardize our country’s security by transacting with Entity List companies like Huawei,” the senators wrote.
Sens. Marco Rubio (R-Fla.), Rick Scott (R-Fla.) and John Cornyn (R-Texas) also wrote Raimondo earlier last month, asking that telecom company Honor Device be added to the Entity List, arguing it was spun off from Huawei to avoid the export restrictions.
With bipartisan concern surrounding trade with entities that may be a threat to national security, President Joe Biden signed legislation prohibiting the Federal Communications Commission (FCC) from reviewing or issuing new equipment licenses to those listed on the FCC’s “Covered Equipment of Services List” as national threats.
