Toothless: No effect of US sanctions on Huawei, been secretly funding research in America for years

US President Joe Biden, Chinese President Xi Jinping. US sanctions have had very little effect on China’s technological development. Image Credit: Reuters

Even though the US has been very loud and vocal about imposing sanctions on China, it seems that their sanctions are all noise, while lacking the teeth to have a proper bite. In other words, it’s a classic case of being all hat and no cattle.

A recent report by Bloomberg has revealed that despite sanctions running years now, Chinese tech giant Huawei has been secretly financing several research projects in the United States.

This covert funding, channelled through a Washington-based research foundation called Optica, has been supporting cutting-edge research at prestigious American universities, including Harvard.

The investigation by Bloomberg uncovered that Huawei has been the sole financial supporter of a research competition managed by Optica, which has been awarding millions of dollars since 2022.

This competition has attracted numerous proposals from scientists, including those from top US universities that have prohibited collaboration with Huawei due to national security concerns.

The concern surrounding this covert funding revolves around the potential for the research to provide China with advancements in both defence contracting and commercial interests.

Optica, the foundation overseeing the research competition, has expressed interest in various research areas, including high-sensitivity optical sensors and detectors, the report said.

However, the acceptance of anonymous funding from a Chinese company like Huawei has raised eyebrows, especially within the US government’s national security circles

Despite concerns, the funnelling of funds for research purposes appears to be legal, as research intended for publication falls outside the ban’s scope.

Huawei conducts similar competitions openly in other parts of the world but chose to remain anonymous in the US-based initiative. Participants in the competition were unaware of Huawei’s involvement, believing the funds to originate from Optica.

A spokesperson from Huawei defended the collaboration with Optica, stating that the competition was established to support global research and academic communication.

The anonymity was purportedly maintained to avoid any appearance of promotion. Optica’s CEO, Liz Rogan, echoed this sentiment, stating that anonymous donations are not uncommon and that the board was aware of Huawei’s involvement.

Huawei has faced restrictions in the US since 2019 when former President Trump signed an executive order banning the sale and use of telecom equipment deemed risky to national security.

These restrictions have escalated under President Biden, with further measures blocking Huawei from obtaining FCC licenses and prohibiting American investments in China’s high-tech industries.

Despite its challenges in the US market, Huawei continues to thrive in Europe. However, its covert research funding in America has reignited concerns about its ties to the Chinese government and its potential impact on US’ national security.