Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

China’s Huawei is already banned from US tech: Here’s what happens if it is put on Washington’s Specially Designated Nationals list

China’s Huawei is already banned from US tech: Here’s what happens if it is put on Washington’s Specially Designated Nationals list

In 2015, OFAC reached a US$963 million settlement with banking group BNP Paribas for violations of US sanctions

Washington has considered banning Huawei Technologies, the world’s largest telecoms equipment supplier, from the US financial system, according to a Reuters report on Tuesday.

Earlier this year the White House National Security Council debated whether to put the Chinese telecommunications giant on the Treasury Department’s Specially Designated Nationals (SDN) list. The financial sanctions plan, which was ultimately shelved in favour of imposing a separate ban on Huawei buying US products and services, could be revived in coming months, the report said.

If applied, the SDN list sanction could make it virtually impossible for Huawei to complete transactions in US dollars, dealing it another blow to the company the US considers a national security risk.


1. What is the SDN list?

Published by the US Office of Foreign Assets Control (OFAC), the SDN list contains names of entities, groups, organizations and individuals that are blocked from making transactions in US dollars. Any US assets they own are frozen.

The list, which is over 1300-pages long, includes individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programmes that are not country-specific.

US citizens are generally prohibited from doing business with anyone on the list.
Essentially, the list represents companies or individuals the US believes are detrimental to its national security.


2. Who is on the SDN list?

The list is regularly updated and the latest version, issued on December 3, 2019, includes Russia’s Rusal, the world’s second largest aluminium company, Russian oligarchs, Iranian politicians and Venezuelan drug traffickers. Mainland Chinese companies on the list include Dalian Ocean Shipping Company and Henan Jiayun Aluminium Industry Co Ltd. The list covers entities in countries including Russia, China, Iran, Britain and the US.


3. Why is it so important?

OFAC, a powerful but largely unknown US government agency, was founded in 1950 and has the authority to levy significant penalties against entities that ignore its directives, including imposing fines and freezing assets.

It is part of the US Treasury’s Selective Sanctions policy where individuals and organizations involved in certain criminal activities are penalised, as opposed to a more comprehensive approach of sanctioning entire nations.

OFAC said the SDN list represents a tool to fight against money laundering and terrorist financing. The US Patriot Act, introduced in 2001, makes it illegal to offer “material support” to terrorists and terrorist organizations on the SDN list.
In 2015, OFAC reached a US$963 million settlement with banking group BNP Paribas for violations of US sanctions against Sudan, Iran, Cuba and Myanmar.


4. What are the risks if Huawei were added to the SDN list?

Some US officials have cautioned that sweeping restrictions on the Chinese telecoms giant could hurt the American tech industry as well, because US companies sell billions of dollars of products to Huawei. However, hardliners in Washington insist that China, and its national champions like Huawei, remain a security threat that must be addressed.

Under the current restrictions of the Entity List, key foreign supply chains remain beyond the reach of US authorities, enabling Huawei to source alternative components from Europe and Japan. However, adding the company to the DNS list would be considered a “nuclear option” to completely block its access to US dollar transactions, according to Reuters.

Annie Fixler, a cyber expert at the Foundation for Defense of Democracies think tank, said the move “would have broad, widespread implications for Huawei across the globe,” noting that its business would be “severely impacted” in Europe and in Asia outside China.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×