
US Prohibitions on Huawei Can Apply to Transactions by Non-US Companies - ETHisso2017
https://www.akingump.com/en/news-insights/reminder-commerce-department-prohibitions-pertaining-to-huawei.html
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ETHisso2017
Some quotes:

"nonpublic U.S.-origin technology necessary to produce a toothbrush may not be
provided to Huawei by a company outside the United States without a BIS
license."

"“Software” is defined as a “collection of one or more programs or
microprograms fixed in any tangible medium of expression.”"

"if U.S.-origin 5D002 encryption source code is used to compile 5D002 object
code outside the United States, the foreign-made object code would be subject
to the EAR when exported to China"

"The prohibitions are blind to the nationality of the exporter, reexporter, or
transferor of the commodity, software, or technology being transferred to the
listed entity. That is, they apply equally to U.S. and non-U.S. persons."

"Violations of the Entity List prohibitions by a non-U.S. company can lead to
civil or criminal penalties, or other sanctions that would affect its ability
to receive U.S.-origin items"

Basically the US is asserting the right to control all trade in technology in
the world, as long as (at some point) that technology used or was developed on
US technology. Seems a bit excessive, and not sure why any other country would
be happy with such an arrangement.

~~~
DiogenesKynikos
Some countries are worried about extraterritorial enforcement of US trade
policy, but they're afraid of confronting the US over the issue. Here's a
recent discussion on Radio France Internationale about the issue: [1].

France would like to confront the US over the issue of extraterritoriality,
which many view as undermining French sovereignty, but they can't do so
without support from Germany. Germany is afraid of tariffs on its auto
industry, so it won't go along with France in standing up to US overreach.

For the moment, the US is able to act in this manner. As long as no coalition
of countries forms to push back, the US can force everyone else to stop doing
business with Iran, with Huawei, and whomever else it chooses to cut off from
the world economy.

As a report for the French Senate points out: [2]

> The European Union and its Member States have shown unity in affirming their
> determination to counter the effects of aggressive use by the United States
> of its economic and geopolitical pre-eminence. What is at stake today for
> Iran could also, tomorrow, apply to other countries targeted by American
> diplomacy.

I think this sort of behavior sets a very bad precedent, though, and will
undermine the post-WWII order that the US played a central role in
establishing. The US agreed to bind itself within a framework of international
institutions, as a form of enlightened self-interest, but more recently, the
US has increasingly acted in a manner that appears purely self-interested and
short-sighted.

1: [https://player.fm/series/geopolitique-le-
debat-65224/geopoli...](https://player.fm/series/geopolitique-le-
debat-65224/geopolitique-le-debat-extraterritorialite-des-sanctions-
americaines-les-enjeux-geopolitiques)

2: [https://www.senat.fr/notice-
rapport/2018/r18-017-notice.html](https://www.senat.fr/notice-
rapport/2018/r18-017-notice.html)

