Ross: The big news is that today we have decided to add 46 more Huawei subsidiaries to the Entity List. When something is added to the Entity List, it means the American companies cannot sell to it except they get a specific license. We have not granted any specific license since that far.
Reporter: So you are doing 46 new subsidiaries, making it tougher then to Huawei?
Ross: It’s tougher just making sure there are no loopholes in the original. We now have more than 100 subsidiaries on the Entity List.
Reporter: Tell me the significance of the Entity List, why is this important?
Ross: Well, here’s the Entity List purpose; it is under the IE privilege legislation. And its purpose is to make sure that we don’t endanger U.S. security.
The President yesterday in his news conference has made clear he is concerned about national security in Huawei. So adding more entities makes it more difficult for Huawei to get around the sanctions.
Reporter: What about the deadline today?
Ross: Well, with another 90 days for the U.S. telecom companies – some of the rural companies are dependent on Huawei – So, it’s given them a lot more time to link themselves off, but there are no specific licenses being granted for anything.
Reporter: So the next deadline we should look at is November 19? Do you think U.S. companies are coming up with the plan to fill that business once that deadline is reached?
Ross: Roughly November 19, yes. Well, everybody has plenty of motives; so there have been plenty of discussions with the President. And the President has made clear in his announcement yesterday that he’s very concerned about more dealings with Huawei.
Reporter: Secretary, tell me the risks about Huawei. We’ve talked about that Huawei being a national security risk because it is a state company in China, a communist company; so can you explain what that means to U.S.?
Ross: Well, technically Huawei said they are a privately-owned company. But under Chinese law, even private companies are required to cooperate with the military and with the Chinese intelligence agencies. And they are also required not to disclose that they are doing so.
So it’s a big problem. But the real problem with Huawei is in connection with the 5G, because 5G being so much soft-ware driven, very hard to separate call activities from peripheral ones. In 3G and in 4G, you can make a pretty good argument that you could separate. Really the argument with 5G, and as 5G is becoming the big activity, it becomes a greater and greater concern.
That’s why we have been advising our allies to be very cautious in making their decision and that’s why Congresses has passed some legislation constricting American funding of Huawei purchases.
Source: Fox News
Edited by staff