Sen. Rick Scott Introduces Legislation to Crack Down on U.S. Companies Selling to Huawei

February 14, 2020

WASHINGTON, D.C. Today, Senator Rick Scott introduced legislation to close a loophole that has allowed U.S. technology companies to sell products to Huawei, which the U.S. Government has determined to be a national security threat and continues to be a bad actor across the globe. U.S. exports to Huawei have been banned, but some U.S. companies are finding ways around the blacklisting, including supplying Huawei through subsidiaries or partners in foreign countries.

Senator Rick Scott said, “We know Huawei is supported and controlled by the communist regime in Beijing, which continues to violate human rights and steal our data, technology, and intellectual property. Companies in the United States should not be allowed to sell to Huawei, and my legislation will further restrict their ability. I look forward to all of my colleagues and the Administration joining in support of my proposal to crack down on U.S. exports to Huawei, protect our national security and the security and growth of the U.S. technology industry.”

Currently, a foreign-produced good that contains 25 percent U.S.-origin content can be exported to a blacklisted company. Senator Scott’s bill would permanently cut that threshold down to 10 percent for any goods exported to Huawei or its in-house semiconductor business. This proposal is currently under consideration for rulemaking by the Department of Commerce.