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A One-Two Punch: The U.S. Government Hits China's Technology Sector

May 16, 2019

By Scott M. Flicker, Behnam Dayanim & Talya Hutchison

The United States Government took two actions on Wednesday that indicated increased pressure and restrictions on the Chinese telecommunications sector. First, President Trump declared a national emergency that will prevent U.S. companies from transacting with foreign information and communication technology companies that the U.S. government deems to be a national security threat. Second, the U.S. Department of Commerce announced it would place Huawei and 68 affiliates on the Entity List, effectively prohibiting the supply to Huawei of any U.S. goods or technology.

  • These two actions by the Trump Administration are designed to restrict ties between U.S. telecommunications technology and China.

  • Any companies dealing in U.S.-origin goods or technology should carefully review engagements with affected Chinese companies, including Huawei.

  • Huawei’s addition to the Entity List will be formalized in a Federal Register notice, which will be formally published and effective on May 21.