Thad McBride Examines New Restrictions Against Huawei Technologies Inc.

June 1, 2020
Society of Corporate Compliance and Ethics

Bass, Berry & Sims attorney Thad McBride commented on new restrictions the U.S. Department of Commerce issued in May related to Huawei.

“This is an additional effort to push Huawei out of U.S. commerce, but it ultimately may not be hugely significant for most U.S. companies,” Thad said. “U.S. companies can still purchase goods from Huawei. U.S. companies can also still sell many non-U.S.-origin products to Huawei. And Huawei is not a prohibited party under U.S. sanctions, for example, like some of the large Russian companies that have been designated as Specially Designated Nationals (SDNs) of the United States. U.S. companies and individuals are prohibited from conducting virtually any transaction with an SDN. That is not the case with Huawei.”

“Simply because a non-U.S. manufacturing facility uses some U.S.-origin equipment to manufacture products does not mean that those non-U.S. products cannot be sold, shipped, or otherwise transferred to Huawei,” Thad explained. “It is only certain types of manufacturers—again, primarily in the semiconductor manufacturing space—that are impacted by the new rule.”

The full article, “US Seeks to Further Isolate Huawei,” was published by the Society of Corporate Compliance and Ethics (SCCE) on May 29 and is available online.