The United States is preparing to blacklist Honor, as Huawei has been, in order to prevent it from using Google’s services and applications.
The US government’s decision to prohibit Huawei from cooperating with US firms has had a huge impact on the smartphone business. The firm has been displaced from very important markets such as Europe and, in particular, the worldwide market owing to the fact that it can not utilize Google’s applications and services.
The firm has chosen to prioritize other areas, such as developing different technologies, rather than solely focusing on smartphones.
To free themselves from the US block, Huawei partnered with a multinational corporation to acquire Honor and neutralize the blockade. Since then, Honor has been engaged in negotiations with Microsoft and other firms intending to return to additional countries.
The U.S. is considering putting Honor on the Entity List
The problem is that now the U.S. administrations are debating, according to information compiled by The Washington Post, between also introducing Honor on the list where Huawei is and not doing so.
Four distinct groups must approve a company’s presence on that list, two of which are in favor (the Pentagon and the Department of Energy) and two against (the Department of State and the Department of Commerce).
The company is an actual danger to national security, according to the first two. The latter two, on the other hand, do not perceive it in that way. The positioning of the former is strange since Honor has not tried to enter the United States, as Huawei did, nor does it have a network division like its once big sister.
The president may have the last word
In the event of a technical tie, President Biden may be compelled to make a choice between two options, one of which would effectively block Honor’s return to global markets while the other would aggravate China.
Of course, Honor currently has a stake in Chinese state-owned companies, which in China is a little less than a synonym for the government being closer than the U.S. administration would like.