Tough-push maker Seagate Tech faces China sanctions warning

BEIJING (AP) — Seagate Engineering said Thursday the U.S. Office of Commerce has warned it might cost the computer really hard-push maker with violating restrictions on exports of superior-tech merchandise to China.

The corporation said in an SEC submitting that it turned down the allegations. It suggests its challenging disc-drives are not subject to U.S. Export Administration polices, but troubles over the situation could influence its company.

“Seagate thinks it has complied with all applicable export regulate laws and rules,” it reported.

Seagate claimed the allegation is above gross sales in between August 2020 and September 2021 to “a shopper and its affiliate marketers.” It did not identify the consumer, however, Seagate is a important supplier of difficult drives to telecoms tools large Huawei Technologies, a big goal of U.S. export controls.

The other big provider, Western Electronic, stopped gross sales to Huawei in 2019, not long immediately after it had signed a strategic partnership with the Chinese business, the greatest maker of community equipment for phone and web carriers.

Huawei did not right away answer to a ask for for comment.

In reporting decreased gain and revenues for its fiscal initial quarter, Seagate explained it was lowering its headcount by 3,000 persons as component of a restructuring. It cited worldwide uncertainties and slower demand from customers.

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