The legal basis is that companies which violate US sanctions are not allowed to operate in the US, or transact business using financial services companies which operate in the US. That applies even if no part of the transaction passes through US territory.
It's unfair that non-US companies must annoy Huawei. Non-US companies usually don't benefit from this. It's like forcing foreigners to be part of your army.
Re:America is determined to sink Huawei
by threatofrain on Friday May 22, 2020 @05:54PM
(#23277512)
Those companies, like every company seeking to do business around the world, will make its judgment call on whether it's worth it to satisfy any party's demands.
Can the US afford to blacklist TSMC from anything?
From https://www.nytimes.com/2020/05/14/technology/trump-tsmc-us-...
Mark Liu, T.S.M.C.’s chairman, told The New York Times in October that T.S.M.C. had been negotiating with the Commerce Department about a possible U.S. plant, but said it would require substantial government subsidies. How much, if any, public money might be associated with the company’s decision was unclear.
And from https://www.bbc.com/news/world-asia-48917705
The US State Department has approved a potential arms sale to Taiwan, estimated to be worth $2.2bn (£1.76bn), the Pentagon said.
Maybe TSMC thought it would be really good if Tawain were protected better thanks to these weapons, and TSMC would also like these subsidies.
Re:America is determined to sink Huawei
by pstrateman on Friday May 22, 2020 @06:12PM
(#23277666)
Taiwan cannot afford to lose the support of the US arms industry.
Out of curiosity, what's the legal basis for this? Is it just a threat, and if companines like TSMC don't follow it, they'll also be blacklisted from the US market?