- United States security agencies are split on whether to add Honor to the Entity List.
- If added, Honor would face the same problems as its former parent company Huawei when it comes to working with US-based firms.
- However, Honor has no presence in the US and no 5G networking business, so it’s unclear why it should be on the list.
In May 2019, the United States added Huawei to the so-called “Entity List.” The company’s presence on this list barred it from working with US-based firms, which most notably includes Google. At the time, Honor was a sub-brand of Huawei using most of Huawei’s assets to produce its wares.
However, Huawei sold off Honor in 2020 in an effort to save it from dealing with the fallout of the ban. Now, though, the US government is apparently mulling the possibility of putting Honor on the Entity List on its own.
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According to The Washington Post, there are allegedly four security agencies involved with this decision. In a vote, the Pentagon and Energy Department reportedly want Honor on the Entity List. Meanwhile, the Commerce Department and State Department do not think adding Honor is necessary. That’s a 2-2 deadlock.
If the organizations can’t figure out what to do, it might take President Joe Biden to step in and cast the deciding vote.
Obviously, if Honor ends up on the list it would be devastating to its business. However, it is unclear why the company belongs on the list at all. Huawei no longer owns it, so that connection is gone. Likewise, Honor has no presence in the United States and doesn’t have a 5G networking equipment division. That last bit is the main reason why Huawei is on the list, so why would Honor belong there?
We’ll need to wait and see how this pans out.