Bosch Fined $36 Million Due to Trade Relations with Huawei

The German technology giant Bosch has agreed to pay a $36 million fine for violating US export restrictions imposed on Huawei. This decision once again confirms that sanctions applied by the US administration against Chinese technology companies strictly affect not only US-based partners but also international ones. This is reported by Ixbt.com reports says.

According to the US Bureau of Industry and Security (BIS) and the Department of Justice, Bosch supplied products and software worth over $72 million to Huawei between 2020 and 2024. According to Tom’s Hardware, these included MEMS sensors widely used in the automotive industry and specialized digital solutions.

US officials emphasized that since these products were created based on US-developed technologies, software, or intellectual property, a special export license was required to sell them to companies on the "entity list" such as Huawei. These rules apply not only to US enterprises but equally to all their foreign subsidiaries.

Errors and Cooperation Results

Bosch management stated that these violations were not intentional, but rather occurred due to negligence by divisions outside the US. Nevertheless, the company admitted its guilt and actively cooperated with the US government during the investigation. Due to this factor, the US Department of Justice decided not to initiate criminal proceedings against the German concern.

In determining the fine amount, it was taken into account that Bosch itself notified officials about these errors and promised to strengthen internal controls. In addition to the total fine of $36 million, the company agreed to forfeit the net profit gained from deals with Huawei. This profit was initially estimated at $11.5 million, but ultimately, a portion was written off, and Bosch will pay $3.6 million.

US officials noted that Bosch had several opportunities to ensure compliance with export control requirements, but deficiencies in the internal audit system prevented this. The German giant has now stated that it will fundamentally reform internal mechanisms controlling international trade restrictions to prevent such cases in the future.

This situation is also an important signal for countries integrated into the global technology market, such as Uzbekistan. Many components in modern automotive and electronics sectors rely on US technologies, which requires local manufacturers and suppliers to approach international sanctions regimes with extreme caution.