The former subsidiary of Huawei, Honor, may be next in the list to get sanctioned by the United States as a group of Republican Congressmen has affirmed to blacklist all the affiliates of Huawei, a report suggested. The news made headlines after a group of Republican Congressmen forwarded a letter to the US Commerce Department demanding to enter Honor’s name in the US Government’s entity list. The Congressmen believe that Honor is still a state owned company and must be identified similarly.
While recollecting the 2019 episode of imposing sanction on Huawei on the suspicion of illegitimate data gathering and leak, the Congressmen raised the suspicion that Honor may be a state owned company even though it is now owned by a group of investors.
The US Government’s Commerce Department responded to the letter by appreciating the efforts of the House Republicans. The spokesman of the Commerce Department stated that the department is continuously monitoring the available information about Honor and will watch out for any suspicious activity. It also noted that if the need be, any potential culprit will be listed in the Entity List.
Notably, 2019 turned out to be a devastating year for Huawei as the US Government imposed sanctions on it. The Chinese government warned the US for taking the objectionable step, however, the US didn’t pay heed to China’s warning. Huawei divested from Honor and sold it to a group of 30 investors in 2019. However, some still believe that Honor is still in control of the Chinese government and functions on their protocols.
In a recently released financial report of half yearly performance, Huawei showed a substantial plunge in its revenue. Now, with the letter submitted by the Republican Congressmen, it seems Honor could be in trouble soon. However, we are closely watching the action-reaction on the issue and will keep our readers updated with the latest developments.
