- United States security agencies disagree on whether to include honor on the entity list.
- If Honor were added, it would face the same problems as its former parent company Huawei in working with US firms.
- However, Honor has no US presence and no 5G network business, so it’s unclear why it should be on the list.
In May 2019, the USA added Huawei to the so-called “Entity List”. The company’s presence on this list prevented it from working with US companies, most notably Google. At the time, Honor was a sub-brand of Huawei that used most of Huawei’s assets to manufacture its goods.
However, Huawei sold Honor in 2020 to save it from the consequences of the ban. But now the US government is apparently considering the possibility of putting Honor on the Entity List alone.
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Corresponding The Washington Post, allegedly four security agencies are involved in this decision. In a vote, the Pentagon and the Department of Energy reportedly want Honor on the entity list. Meanwhile, the Department of Commerce and the Department of Foreign Affairs consider adding Honor to be unnecessary. That’s a 2-2 deadlock.
If the organizations cannot figure out what to do, President Joe Biden may have to step in and cast the casting vote.
Obviously, if Honor lands on the list, it would be devastating to its business. However, it is unclear why the company should be on the list at all. Huawei no longer owns it, so the connection is gone. Likewise, Honor has no US presence and no 5G network equipment department. The last piece is the main reason Huawei is on the list, so why should Honor belong there?
We’ll have to wait and see how that turns out.
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