In order to keep Honor alive, Huawei made a proactive decision to cut from it at the end of last year. In this way, the cooperative relationship between Honor and Qualcomm, Intel and other suppliers can continue, and the brand’s consumer business can at least continue to operate. However, the U.S. official obviously has no plan to let Honor lightly. According to the Washington Post, four federal agencies have voted on whether to put Honor on the Department of Commerce’s entity list. The end result was a two-for-two tie. People from the Ministry of Defense and the Ministry of Energy supported the sanctions, but the Ministry of Commerce and the State Council expressed their opposition.
Next, these institutions need to reach a new decision. If the opinions cannot be unified, the matter will be handed over to President Biden. When asked about this matter, the representative of the Ministry of Commerce Brittany Caplin did not specifically mention Honor, but talked more broadly about the issue of the entity list, saying that it will continue to review the risks of illegal sharing of American technology by companies on the list. “We will work hard to prevent China and other countries from using our technology under the premise of endangering the national security and diplomatic interests of the United States through all means including export controls,” Caplin said.
Given that Honor has never supplied communication products to telecom companies in the United States like Huawei, nor has it sold consumer products such as mobile phones to the United States, it would be a bit far-fetched to list it as a national security threat from the perspective of actual evidence. In addition, Honor is now one of Qualcomm’s major customers, and unlike Huawei’s reliance on the US supply chain in the past, sanctions on Honor will inevitably have a very negative impact on the business of US companies.