Despite the embargo that prevents Huawei from buying American equipment, some companies continue their small business with the Chinese manufacturer. This is particularly the case of Seagate, which has just been caught red-handed by the Bureau of Industry and Security. The sentence did not take long to fall: 300 million dollars in fines.
Huawei has been blacklisted in the United States for 4 years, and the case has not finished talking about it. In theory, this embargo is supposed to prohibit Huawei from buying hardware and software from American companies. This is the reason why the manufacturer’s smartphones can no longer run on Android. De facto, American companies are also prohibited from selling their products and services to Huawei.
However, some of them do not hesitate to ignore the restrictions to continue their small businesses. And obviously, Seagate fell into the latter category. Indeed, the Bureau of Industry and Security has just announced that the hard drive manufacturer has been fined a heavy fine of 300 million dollars, or 273.4 million euros, for having continued to sell its equipment to Huawei after the embargo.
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Seagate gets caught red-handed trading with Huawei
According to the American organization, Seagate would therefore have delivered no less than 7.4 million hard drives to its partner since the implementation of the blockade in 2019, for a total value estimated at 1.1 billion dollars, or approximately 910 million euros. Also according to the Office, the other two companies from which Huawei bought its hard drives stopped their collaboration at the time of the embargo imposed by the Trump administration.
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“These regulations are a clear call to the need for businesses to strictly adhere to BIS export rules, as our law enforcement team strives to ensure both our national security and human rights. fair conditions of competition”said Matthew Axelrod, assistant secretary for export enforcement at BIS.
Source : Bureau of Industry and Security
