Seagate hit with $300 million penalty for continuing $1 billion relationship with blacklisted firm Huawei, despite U.S. export controls

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Seagate hit with $300 million penalty for continuing $1 billion relationship with blacklisted firm Huawei, despite U.S. export controls
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Seagate shipped over 7.4 million hard drives to blacklisted Huawei, even after the U.S. government imposed export controls on the Chinese company.

Seagate will pay $300 million penalty over its lucrative alleged relationship with blacklisted Chinese firm Huawei, which Seagate continued even after export controls were announced.

It's the largest standalone penalty in the history of the Commerce Department's export control bureau.Huawei is back in the spotlight in Europe after a report suggested Germany may ban some equipment from the Chinese telecommunications giant in its 5G network.will pay a $300 million penalty for allegedly continuing an unauthorized $1.1 billion relationship with Chinese technology firm Huawei after the company was added to a U.S. trade blacklist in 2020.

Seagate shipped over 7.4 million HDDs to Huawei from Aug. 2020 to Sept. 2021, federal regulators said. Neither Huawei nor Seagate made an apparent effort to hide their relationship, according to federal. "Seagate well seized the opportunity and successfully won the big share," Huawei allegedly said. "All the while, Seagate's competitors declined similar exports," a Commerce Department press release said.

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