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Huawei established Honor in China in 2013 as a competitor to popular smartphone makers.
US federal agencies such as the Department of Defense and the Department of Commerce are unable to decide whether or not to sanction Huawei-owned Honor.
According to the Washington Post, officials from the Department of Commerce, State Department, Pentagon and Department of Energy met last week to decide whether or not smartphone maker Honor would be included in the list of companies with which the United States is banned from doing business. The Pentagon and the Department of Energy favored the inclusion of the company on the sanctions list, while the Department of Commerce and the Department of State opposed. If listed, Honor will not be able to buy technology from American companies without a special license.
Huawei established Honor in China in 2013 as a competitor to popular mobile device manufacturers such as Xiaomi. Nearly three years later, Huawei has announced the sale of the Honor 8 smartphone in the United States. The company decided to see if Honor can gain popularity outside of China and compete with tech giants like Apple. In November 2020, Huawei sold Honor to the Chinese state-owned company Shenzhen Zhixin New Information Technology.
The differences of opinion over Honor illustrate the difficulties facing the administration of US President Joe Biden in tackling the competitive threat from China. The Donald Trump administration kicked off the fight in 2019 by declaring Huawei, one of the world's largest technology makers, a threat to US national security. Huawei's senior financial officer, Meng Wanzhou, was later charged with bank and electronic fraud and is currently awaiting extradition to Canada.
Republicans are pressuring the Biden administration to use export controls such as the Commerce Department's sanctions list to stifle competition from China. Last month, Texas Representative to the US Congress Michael McCaul sent a letter to Secretary of Commerce, Gina Raimondo, signed by more than ten MPs, urging Honor to be sanctioned. The Honor sale is just a formality that will allow Huawei to bypass export controls, McCall said.
According to Huawei, it had to sell Honor in part due to being sanctioned in 2019, making it difficult for the company to purchase the software licenses and processors needed to build Honor devices.
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US federal agencies such as the Department of Defense and the Department of Commerce are unable to decide whether or not to sanction Huawei-owned Honor.
According to the Washington Post, officials from the Department of Commerce, State Department, Pentagon and Department of Energy met last week to decide whether or not smartphone maker Honor would be included in the list of companies with which the United States is banned from doing business. The Pentagon and the Department of Energy favored the inclusion of the company on the sanctions list, while the Department of Commerce and the Department of State opposed. If listed, Honor will not be able to buy technology from American companies without a special license.
Huawei established Honor in China in 2013 as a competitor to popular mobile device manufacturers such as Xiaomi. Nearly three years later, Huawei has announced the sale of the Honor 8 smartphone in the United States. The company decided to see if Honor can gain popularity outside of China and compete with tech giants like Apple. In November 2020, Huawei sold Honor to the Chinese state-owned company Shenzhen Zhixin New Information Technology.
The differences of opinion over Honor illustrate the difficulties facing the administration of US President Joe Biden in tackling the competitive threat from China. The Donald Trump administration kicked off the fight in 2019 by declaring Huawei, one of the world's largest technology makers, a threat to US national security. Huawei's senior financial officer, Meng Wanzhou, was later charged with bank and electronic fraud and is currently awaiting extradition to Canada.
Republicans are pressuring the Biden administration to use export controls such as the Commerce Department's sanctions list to stifle competition from China. Last month, Texas Representative to the US Congress Michael McCaul sent a letter to Secretary of Commerce, Gina Raimondo, signed by more than ten MPs, urging Honor to be sanctioned. The Honor sale is just a formality that will allow Huawei to bypass export controls, McCall said.
According to Huawei, it had to sell Honor in part due to being sanctioned in 2019, making it difficult for the company to purchase the software licenses and processors needed to build Honor devices.
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