Huawei

December 17, 2020, 9:30 PM

In August 2018, the <a class="mw-redirect" title="National Defense Authorization Act for Fiscal Year 2019" href="https://en.wikipedia.org/wiki/National_Defense_Authorization_Act_for_Fiscal_Year_2019">National Defense Authorization Act for Fiscal Year 2019</a> (NDAA 2019) was signed into law, containing a provision that banned Huawei and ZTE equipment from being used by the U.S. federal government, citing security concerns.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-188">[188]</a> Huawei filed a lawsuit over the act in March 2019,<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-189">[189]</a> alleging it to be unconstitutional because it specifically targeted Huawei without granting it a chance to provide a rebuttal or <a title="Due process" href="https://en.wikipedia.org/wiki/Due_process">due process</a>.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-190">[190]</a>

Additionally, on 15 May 2019, the <a title="United States Department of Commerce" href="https://en.wikipedia.org/wiki/United_States_Department_of_Commerce">Department of Commerce</a> added Huawei and 70 foreign subsidiaries and "affiliates" to its <a title="Entity List" href="https://en.wikipedia.org/wiki/Entity_List">Entity List</a> under the <a title="Export Administration Regulations" href="https://en.wikipedia.org/wiki/Export_Administration_Regulations">Export Administration Regulations</a>, citing the company having been indicted for "knowingly and willfully causing the export, re-export, sale and supply, directly and indirectly, of goods, technology and services (banking and other financial services) from the United States to Iran and the government of Iran without obtaining a license from the Department of Treasury's <a title="Office of Foreign Assets Control" href="https://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control">Office of Foreign Assets Control</a> (OFAC)".<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-191">[191]</a> This restricts U.S. companies from doing business with Huawei without a government license.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-192">[192]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-193">[193]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-194">[194]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-195">[195]</a> Various U.S.-based companies immediately froze their business with Huawei to comply with the regulation.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-196">[196]</a>

The May 2019 ban on Huawei was partial: it did not affect most non-American produced chips, and the Trump administration granted a series of extensions on the ban in any case,<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-197">[197]</a> with another 90-day repreive issued in May 2020.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-198">[198]</a> In May 2020, the U.S. extended the ban to cover semiconductors customized for Huawei and made with U.S. technology.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-:7-199">[199]</a> In August 2020, the U.S. again extended the ban to a blanket ban on all semiconductor sales to Huawei.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-:7-199">[199]</a> The blanket ban took effect in September 2020.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-:8-200">[200]</a>

These actions have negatively affected Huawei production, sales and financial projections.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-201">[201]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-202">[202]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-203">[203]</a> However, on 29 June 2019 at the <a title="2019 G20 Osaka summit" href="https://en.wikipedia.org/wiki/2019_G20_Osaka_summit">G20 summit</a>, the <a title="President of the United States" href="https://en.wikipedia.org/wiki/President_of_the_United_States">US President</a> made statements implicating plans to ease the restrictions on U.S. companies doing business with Huawei.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-204">[204]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-205">[205]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-206">[206]</a> Despite this statement, on 15 May 2020, the <a class="mw-redirect" title="U.S. Department of Commerce" href="https://en.wikipedia.org/wiki/U.S._Department_of_Commerce">U.S. Department of Commerce</a> extended its export restrictions to bar Huawei from producing semiconductors derived from technology or software of U.S. origin, even if the manufacturing is performed overseas.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-207">[207]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-208">[208]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-209">[209]</a> In June 2020, the <a title="Federal Communications Commission" href="https://en.wikipedia.org/wiki/Federal_Communications_Commission">Federal Communications Commission</a> designated Huawei a national security threat, thereby barring it from any U.S. subsidies.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-:6-18">[18]</a> In July 2020, the <a title="Federal Acquisition Regulation" href="https://en.wikipedia.org/wiki/Federal_Acquisition_Regulation">Federal Acquisition Regulation</a> Council published a <a title="Federal Register" href="https://en.wikipedia.org/wiki/Federal_Register">Federal Register</a> notice prohibiting all federal government contractors from selling Huawei hardware to the federal government and preventing federal contractors from using Huawei hardware.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-210">[210]</a>

In November 2020, <a title="Donald Trump" href="https://en.wikipedia.org/wiki/Donald_Trump">Donald Trump</a> issued an <a title="Executive Order 13959" href="https://en.wikipedia.org/wiki/Executive_Order_13959">executive order</a> prohibiting any American company or individual from owning shares in companies that the <a title="United States Department of Defense" href="https://en.wikipedia.org/wiki/United_States_Department_of_Defense">United States Department of Defense</a> has listed as having links to the People's Liberation Army, which included Huawei.<a href="https://en.wikipedia.org/wiki/Huawei#cite_note-211">[211]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-212">[212]</a><a href="https://en.wikipedia.org/wiki/Huawei#cite_note-213">[213]</a>

<h3>Canadian response</h3>

Huawei

Attachments