The Department of Commerce reported that Seagate Technology sold more than $1.1bn to Huawei after 2020 export controls.
The penalty is the most recent step taken by the United States government to halt the export of sophisticated technology to China. The Chinese military may use such equipment, according to US authorities.
Seagate’s Continued Business With Huawei
The rule was implemented by the administration of former President Donald Trump, and the Commerce Department reports that Seagate shipped 7.4 million hard drives to Huawei in the roughly year that followed.
It continued to do so even after Huawei was placed on the Entity List for conduct detrimental to our national security, according to Matthew Axelrod of the Department’s Bureau of Industry and Security (BIS).
Mr. Axelrod stated, “This settlement is a clarion call for companies to comply stringently with BIS export regulations, as our enforcement team works to ensure both our national security and a level playing field.”
Read more: Expanded Eligibility: Seniors Now Able To Receive Second COVID-19 Booster Shot
Huawei’s Hard Drive Suppliers Cease Exports
In accordance with the new regulation, Huawei’s other two primary hard drive suppliers ceased exports to the Chinese company, the department reported.
Seagate stated that the fine will be paid in $15 million installments every three months for the next five years. It comes as the United States continues its efforts to restrict China’s access to advanced technologies, such as computer chips.
U.S. national security and foreign policy concerns led to Huawei’s inclusion on a trade restrictions list in 2019. This move was made to limit the export of American goods to Huawei.
Washington has asserted that the technology could be utilized by the Chinese military to support human rights abuses or pose other threats to US national security. The Chinese government has denied the allegations on numerous occasions.
In recent years, numerous Western nations have taken precautions against Chinese technology companies out of security concerns.
The United States, Australia, Japan, India, and Canada have prohibited Huawei, ZTE, and Hytera from installing equipment on their respective networks.
In the meantime, the British government has mandated that Huawei equipment must be removed from 5G networks by 2027.
This week, Hikvision, a Chinese surveillance technology giant, denied allegations that it had knowingly sold disguised products to the United States government in order to aid Chinese spying.
Read more: Maximizing Your Tax Refund: Smart Alternatives To Immediate Spending
