$300 million fine for company exporting hard drives to Chinese Huawei
According to the BBC’s report, the US Department of Commerce reported that Seagate Technology shipped more than $1.1 billion in goods to Huawei after the introduction of export controls in 2020.
Seagate will pay the $300 million fine for this reason in installments of $15 million every three months for 5 years.
The penalty, which came as the US tried to block exports of technological products such as advanced computer chips to China, was Washington’s latest attempt to stop the sale of advanced technology to Beijing.
Many countries have banned Chinese tech companies
Huawei was listed on trade restrictions in 2019 as part of efforts to reduce sales of American goods to the company due to US national security and foreign policy concerns.
The US believes the technology could be used by the Chinese military to support human rights abuses or threaten US national security. China denies the allegations.
In recent years, many countries other than the USA have taken various measures against Chinese technology companies due to security concerns.
Companies specializing in 5G technology such as Huawei, ZTE and Hytera were banned from installing equipment on networks in the US, Australia, Japan, India and Canada.
The UK has demanded that equipment installed by Huawei be removed from 5G networks by 2027.