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Rubio calls on Biden administration to blacklist Huawei spin-off Honor

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WASHINGTON, Oct 14 (Reuters) – Republican Senators led by Marco Rubio on Thursday referred to as on the Biden administration to blacklist Honor, a former unit of embattled Chinese telecoms big Huawei, describing the agency as a menace to nationwide safety.

In a letter dated Thursday Oct. 14 seen by Reuters, Rubio described Honor as primarily an “arm” of the Chinese authorities with newly unfettered entry the identical prized U.S. know-how at present denied to Huawei. The letter provides their voices to a rising refrain of China hawks calling for the blacklisting.

By spinning off Honor, “Beijing has effectively dodged a critical American export control,” Rubio wrote, within the letter signed additionally by Senators John Cornyn and Rick Scott. In November 2020, Huawei offered off its lower-end smartphone model Honor.

“By failing to act in response, the Department of Commerce risks setting a dangerous precedent and communicating to adversaries that we lack the capacity or willpower to punish blatant financial engineering by an authoritarian regime.”

Honor, Commerce and the Chinese Embassy in Washington didn’t instantly reply to requests for remark.

Huawei declined to remark however pointed to a previous assertion, which affirmed that Huawei wouldn’t maintain any shares or be concerned in managing Honor following the spin-off.

Chinese telecoms big Huawei was positioned on a commerce blacklist by the Trump administration in 2019, arguing the corporate posed a nationwide safety menace, which Huawei denies.

Being on the so-called entity record meant Huawei’s U.S. suppliers have had to acquire particular licenses to promote key gadgets like semiconductors to the agency.

As sanctions in opposition to the corporate started to chew amid tighter controls, Huawei stated in November it was promoting its finances model smartphone unit, Honor, to a consortium of over 30 brokers and sellers.

In August a gaggle of 14 Republican Congressmen led by Michael McCaul, the rating member of the House Foreign Affairs Committee, additionally referred to as on the Commerce Department to blacklist Honor, alleging the corporate was spun off to evade U.S. export controls and to give Huawei entry to blocked semiconductor chips and software program.

Reporting by Alexandra Alper; Editing by Diane Craft

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