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| Honor always runs the risk of being added to the Entity List |
The US Republican legislature hopes the US Commerce Department will honor a list of US companies like its former parent company Huawei.
14 Republican politicians in the US House of Representatives have asked the US Commerce Department to put the former subsidiary Huawei on the government's economic blacklist.
The organization, led by Republican Michael McCaul, a ranking member of the House Foreign Affairs Committee, said the deal was intended to circumvent US export control policies.
US export control policy is designed to prevent US technology and software from falling into the hands of the Chinese Communist Party.
After adding Huawei to the list of American companies, its fortunes quickly changed and it was on the verge of ousting the smartphone giant Samsung.
Huawei is no longer one of the world's top five smartphone brands, and many companies and its affiliates are prohibited from buying or licensing US products, including software.
She also had to sell her honor to save them from the same fate. But all this may be of no value to some US lawmakers.
Lawmakers assume Honor will still be affected by the same state-backed ownership structure as Huawei, even with a new owner.
Huawei has been accused of posing a threat to national security, and has been added to a list of US companies to prevent the purchase of materials, technology and software needed to manufacture smartphones or network devices.
The ban extends to many Huawei companies and its subsidiaries, including Honor, which accounts for nearly half of annual smartphone sales.
Honor is still on the list of dangerous entities
The only way Glory can get around this punishment is to walk away from parent company Huawei.
Late last year, Huawei completed the sale of Honor to a consortium of 30 companies allegedly affiliated with Honor.
This is clearly a strategy to allow Honor to source US products. The smartphone manufacturer has signed contracts with companies such as Qualcomm and Google.
It recently launched Honor 50 series with Snapdragon chipset and Google Play Apps in June last year.
The legislature stated that the sale of Honor enabled the use of semiconductor chips and software based on them. If it is not sold, it will be banned.
The Commerce Department under the new Biden administration previously announced that it would not lift the ban on Huawei.
A spokesman for the US Department of Commerce said the agency values the views of these members of Congress. He noted that the department had reviewed the information available to identify potential additions to the list of companies.
The appearance of such things is undoubtedly a devastating blow to glory. Especially since the brand has just recovered from its turbulent 2021. Whether it's because of Huawei or because of the pandemic.