Hard drive exports to Huawei result in a $300 million fine from the United States.

Hard drive exports to Huawei result in a $300 million fine from the United States.

Seagate, a technology company, has been fined $300 million (£241 million) by US authorities for allegedly violating export controls for hard disk drives to Huawei in China.

According to the Department of Commerce, after export controls were implemented in 2020, Seagate Technology shipped goods to Huawei worth more than $1.1 billion.

The latest action taken by the US government to stop selling advanced technology to China is the penalty.

US specialists have said such gear might be utilized by China’s military.

The Commerce Department says that Seagate shipped 7.4 million drives to Huawei for about a year after the rule was put in place by the Trump administration.

Matthew Axelrod of the department’s Bureau of Industry and Security (BIS) stated that it continued to do so “even after Huawei was placed on the Entity List for conduct inimical to our national security.”

Hard drive exports to Huawei result in a $300 million fine from the United States.

Mr. Axelrod went on to say, “This settlement is a clarion call about the need for businesses to comply rigorously with BIS export rules, as our enforcement team works to ensure both our national security and a level playing field.”

Huawei’s other two primary hard drive

Huawei’s other two primary hard drive providers had halted products to the Chinese firm as per the new rule, the office said.

According to Seagate, the penalty will be paid in $15 million installments every three months for the next five years.

It comes as the US proceeds with its drive to control deals of innovation, for example, high level central processors, to China.

As part of Washington’s efforts to reduce the company’s sales of American goods due to concerns about national security and foreign policy, Huawei was placed on a list of US trade restrictions in 2019.

According to Washington, the technology could be used by the Chinese military to support violations of human rights or pose other threats to US national security.

The allegations have been repeatedly refuted by the Chinese government.

Due to security concerns, numerous Western nations have taken action against Chinese technology companies in recent years.

In the US, Australia, Japan, India, and Canada, companies like Huawei, ZTE, and Hytera, which specialize in 5G technology, are prohibited from installing equipment on networks.

In the meantime, the UK government has instructed Huawei-installed equipment to be phased out of 5G networks by 2027.

Recently, Chinese reconnaissance innovation monster Hikvision rejected that it was illicitly camouflaging its items offered to the US government to empower Chinese surveillance.

It was responding to questions from the BBC about allegations made in a Pentagon document that was recently leaked.

In the past, the United States has imposed penalties on companies that violated its export controls on goods and technology to Huawei, a Chinese telecommunications company. One example of this was in 2020, when the US Department of Justice announced a $300 million penalty against a Taiwanese electronics manufacturer for conspiring to violate US export controls by illegally shipping hard disk drives with US technology to Huawei.

The US government has cited national security concerns as the reason for imposing these penalties, as they believe that Huawei has ties to the Chinese government and poses a potential threat to US interests. Huawei has denied these allegations and has stated that it operates independently of any government.

The US government’s actions have caused tensions between the US and China, as Huawei is seen as a key player in China’s technology industry. The situation has also raised questions about the impact of export controls on the global technology industry and the potential for a new technology cold war between the US and China.

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