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| Seagate violated sanctions by selling Huawei products |
A US Senate group said shipping hard drives from Seagate to Chinese manufacturer Huawei may have violated government sanctions.
A minority of Republican members of the Senate Commerce, Science and Transportation Committee released a report saying the company ignored August 2020 restrictions on shipping semiconductor components to Huawei. The report indicated that this category could include hard drives.
The report ordered the company to stop shipping to Huawei. He also urged the US Commerce Department to prioritize sanctions. The Trump administration took this step after accusing Huawei of posing a national security threat.
Huawei uses hard drives from Seagate, Western Digital, and Toshiba in its growing external storage business.
According to the report, Western Digital and Toshiba have halted deliveries following the sanctions. This prohibits companies operating in the United States from selling certain products to Huawei without permission.
But Seagate said in 2020 that it believes its hard drives do not need such a license.
Earlier this year, congressional Republicans publicly polled optical disc manufacturers about the Huawei problem.
Seagate officials reportedly confirmed in October 2021 that they had not applied for a license to sell products to Huawei.
Although the official said he has stopped shipping hard drives to Huawei. But they did not say when the goods would stop.
In August 2020, the rules tightened trade restrictions
Citing industry documents and reports, the report concluded that it is well known in the storage industry that Seagate has continued to work with Huawei long after the August rules went into effect.
The report said that the company made an unexpected profit by ignoring the sanctions imposed on Huawei. The report shows that the company's share has increased by about 86% since the regulation came into force.
The first increase began in October 2020, shortly after the actual date, when the company reportedly continued to ship to Huawei and became the sole supplier of the hard drive in the United States.
A company spokesperson told the Wall Street Journal: We comply with all laws that govern its business and operations, including export control regulations.
The US Department of Commerce's Bureau of Industry and Security said it is determined to investigate all allegations of abuse, including those related to Huawei and China.
A spokesman for the office said: "The procedures may be announced at the end of the investigation." We undertake to report the situation to the Convention Office once the investigation is completed. We look forward to continued dialogue with Congress about our national security and economic interests.