The Department of Commerce announced that it will add Huawei to the Bureau of Industry and Security’s Entity List, preventing American companies from selling technology to Huawei without approval from the American government.
The move comes shortly after the White House announced an executive order to grant authority to prohibit the purchase of communications technologies from companies that pose a risk to national security. Although the executive order did not make mention of any companies, the company has been the subject of multiple supply chain regulations.
Commerce’s statement also cited the open indictment against Huawei and CFO Wanzhou Meng for breaking sanctions against Iran and stealing intellectual property.
“This will prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests,” said Secretary of Commerce Wilbur Ross.
“This is a needed step, and reflects the reality that Huawei and ZTE represent a threat to the security of U.S. and allied communications networks,” Warner said.