The US Defense Department report says that 20 top Chinese firms, including Huawei, are either owned by or backed by the Chinese military
The United States government has long accused Huawei and other tech firms from China for working for the CCP government but had desisted from saying they work for the Chinese PLA. Now, a report by the United States Department of Defense squarely says the top 20 tech firms from China including Huawei work for the Chinese military.
The list published by US DoD and seen by the BBC includes 20 Chinese firms that are “either owned by or backed by the Chinese military.” Huawei, China Mobile, AVIC, and Hikvision are some of the names that figure in the US DoD list.
This could mean more trouble for Huawei as this particular list can be used by the United States government for another set of sanctions. BBC says that this list can be shared with “congressional committees, US businesses, trade summits, investor meets and other potential partners of Chinese firms.” Under the law, the Defense Department is required to track firms “owned or controlled” by China’s People’s Liberation Army that are active in the US and this list seems to the outcome of that law.
This list could also be shared with NATO partner countries, Five Eyes nations, and Indo-Pac countries like Australia, India, and Japan to help them with their choice of partners for the upcoming 5G infrastructure.
Huawei is already banned from importing or exporting technology from/to the United States since May 2019. The Trump administration has extended this ban for another year and named Huawei as a national security risk.
After this export ban came into force, Huawei cannot use Android, Google Play Services, or Windows applications in its products. It has already delayed the launch of its flagship Mate range of Android smartphones due to the non-availability of processors after TSMC refused to manufacture Kirin SoCs citing the U.S. sanctions.
At present, Huawei is selling old Android smartphones by branding them as new-edition smartphones to beat the U.S. sanctions.
U.K government has decided to kick out Huawei from its 5G infrastructure grid in 3 years while India is contemplating banning both Huawei and ZTE after the Galwan Valley clashes. Brazil has been offered financial aid by the United States if it stays away from Huawei.