The “Entity list” does not seem to be working, and the US crackdown on Huawei continues, with the use of the “nuclear option” against Huawei. Reuters on December 3 quoted sources as saying that the United States was considering including Huawei in the next few months in the “Special Lynation List” (SDN), depending on “Huawei’s developments”. Simply put, it would ban Huawei from entering the U.S. financial system, ban Huawei from trading in dollars and freeze its assets. In terms of the intensity of sanctions, this is the united States’ most lethal weapons of sanctions.
Observers note that the list has been used by the United States in imposing sanctions on individuals from companies such as Iran and Russia. If listed, Huawei would be the largest company on the list ever.
Reuters quoted three sources as saying the Trump administration considered including Huawei in the SDN earlier this year, but shelved the plan and chose to include Huawei in its “entity list.”
Recently, however, the US has expressed interest in re-listing Huawei in SDN. First, the program passed the White House National Security Council and has been listed as an option for “sanctions against Huawei.” At the same time, United States government officials drafted a memorandum on the matter and held an inter-agency meeting. People familiar with the matter said the U.S. government’s decision to restart the sanctions against Huawei would depend on how “Huawei’s situation” unfolded.
Zhang Guoxun, a senior adviser at Zhonglun Law Firm, said the SDN list is maintained by the U.S. Treasury Department’s Office of Overseas Asset Management (OFAC). The persons on the list are referred to as specially designated nationals (i.e. SDNs), i.e. individuals and entities whose property and property interests have been frozen under various sanctions schemes administered by OFAC. In general, Americans (including U.S. citizens, legal permanent residents, entities established under U.S. law, and other organizations located in the United States, etc.) may not do any business with SDN and must freeze the property and property interests of SDNs they own or control. SDN sn is also not allowed to access the U.S. financial system.
THE OFAC AND THE U.S. STATE DEPARTMENT ALSO REQUIRE FOREIGNERS IMPLICATED IN VIOLATING THE SDN BAN TO FACE CIVIL AND CRIMINAL PENALTIES UNDER THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT. At the same time, foreigners may also be subject to secondary U.S. sanctions if they make significant transactions with entities on the SDN list for certain goods and services.
As a result, SDN’s dealings with non-Americans will also be adversely affected to some extent. In addition, being included in the SDN list can result in some reputational damage to individuals or businesses.
Observers note that the list of SDNs listed on the Treasury’s official website is now 1,346 pages long. Rusal, the world’s second-largest aluminum company, and Persian Gulf Petrochemical Industries, Iran’s largest petrochemical company, are listed. And that’s the means the U.S. used to sanction Iran and Russia. According to the website of China’s Ministry of Commerce, the United States announced sanctions against Iran in December 2018, the Iranian-related enterprises and individuals included in the SDN.
If it were on the list, Huawei would be the largest company on the list ever.
On the matter, a Treasury spokesman would not comment on the investigation or anticipated actions. “The U.S. is always thinking about ways to sanction companies,” U.S. Commerce Secretary Reince B. Ross told CNBC News on the same day. But today I don’t think anything is going to happen. “
Mr. Ross said unilaterally that Huawei was urging its suppliers to move business out of the U.S. to avoid U.S. sanctions “in order to encourage U.S. companies to break the law.”
It is worth mentioning that in May, Huawei was placed on a “entity list” in an attempt to undermine its performance by blocking its business dealings with US companies. However, the program is suspected to have lapsed.
“Without relying on the U.S., we can now solve the supply problem, ” Ren Zhengfei, Huawei’s president, said in an interview with German media last month. The U.S. puts Huawei on the list of entities, and Huawei survives… The Entity list won’t hurt Huawei, but it will hurt U.S. companies. The U.S. government loves to withdraw, does not love to withdraw is not revoked, only need to consider the interests of U.S. companies, do not need to help us “