What does it mean
In total, the list includes 59 companies from China, including Huawei. These are the companies that are suspected of having ties to the Communist Party. By the way, Huawei was joined by the manufacturer of SMIC chips, the telecom operator China Mobile, the video surveillance company Hikvision and many Chinese companies in the defense sector.
“I believe that the use of Chinese surveillance technologies outside of the People’s Republic of China and the development or use of Chinese surveillance technologies to promote reprisals or serious human rights violations constitute unusual and extraordinary threats, originating wholly or partly outside of the United States, in the interests of the national security, foreign policy, and economy of the United States, and I hereby extend the scope of the national emergency declared in Executive Order 13959 to address these threats», — Joe Biden said in a statement.
American investment companies and individuals are allowed to withdraw any funds from the recently banned companies for one year. The decree will come into force on August 2. In fact, these bans have already been introduced by the US Department of Defense and do not bring anything new. But it follows from this that Joe Biden intends to follow the path of his predecessor, Donald Trump, and is not going to ease the sanctions imposed. Therefore, Huawei’s management should not wait for any softening.