The US Commerce Department is adding Chinese telecom company Huawei and 70 affiliates to its ‘Entity List’, which would prevent the company from buying components from US companies without US government approval, Reuters reports. Commerce Secretary Wilbur Ross Ross announced the decision and said the department had reasonable basis to believe Huawei was “engaged in activities that are contrary to US national security.” The decision would also make it “difficult if not impossible” for Huawei to to sell products for which it relied on parts from US suppliers. What is the 'Entity List'? The US Commerce Department website says its Entity List is part of its Export Administration Regulations (EAR) and comprises “certain foreign persons – including businesses, research institutions, government and private organisations, individuals, and other types of legal persons – that are subject to specific license requirements for the export, re-export and/or transfer (in-country) of specified items”. The list specifies the license requirements that it imposes on each listed person or organisation. It says that these parties “present a greater risk of diversion to weapons of mass destruction programs, terrorism, or other activities contrary to US national security and/or foreign policy interests”. The department’s Bureau of Industry and Security can add a foreign party to the Entity List for engaging in activities contrary to US national security and/or foreign policy interests. The website reads, “In most instances, license exceptions are unavailable for the export, reexport, or transfer (in-country) to a party on the Entity List of items subject to…
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