BIS Not Taking Huawei Enforcement 'Seriously' Enough, China Expert Says
The Bureau of Industry and Security by now should have penalized Seagate Technologies for illegally exporting goods to Huawei, James Mulvenon, a China technology and military expert, wrote in a June 6 post for the Lawfare blog. Mulvenon said BIS’s “inaction” has emboldened other companies to export similar shipments and is indicative of a larger enforcement issue at BIS surrounding its foreign direct product rule for Huawei.
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Mulvenon said BIS’s “enthusiasm for enforcing the FDPR has not matched that of enforcement of other rules like export controls and sanctions aimed at Iran.” The Senate Commerce Committee in October said Seagate likely violated U.S. export controls against Huawei (see 2111160015), and other lawmakers have urged BIS to better enforce its FDP rule, which they said isn't adequately stopping Huawei and other Chinese companies from acquiring certain sensitive U.S.-produced technology (see 2111160015).
“This lack of enforcement signals that the threat of Huawei acquiring U.S. technology does not appear to be taken as seriously as other national security risks,” wrote Mulvenon, a scientific research and analysis director at Peraton Labs. “The Seagate story is consistent with that signaling.”
The lack of enforcement not only has allowed Seagate to continue exporting controlled goods to Huawei for nearly a year, but it’s also sent a message to other companies that the FDP rule “will not be enforced or may not be enforced consistently,” Mulvenon wrote. “This lack of effective and consistent enforcement and investigation in the face of ample evidence in effect incentivizes companies to continue to ship controlled exports to Huawei.”
Spokespeople for Seagate and BIS didn’t comment. BIS said last year that it’s committed to investigating any allegations of export violations and will make its enforcement actions public at the end of a probe.