The Biden administration has escalated its efforts against Huawei by revoking eight licenses this year that allowed certain companies to supply goods to the Chinese telecom giant, according to a document obtained by Reuters. This move underscores ongoing US pressure on Huawei, aimed at curbing its resurgence despite previous export restrictions.
The Commerce Department, overseeing US export policy, initially disclosed in May that it had revoked "certain" licenses, without specifying impacted suppliers. However, recent details reveal Qualcomm and Intel among the affected companies, highlighting stricter controls on exports to Huawei.
In response to inquiries from Republican Congressman Michael McCaul, the Commerce Department confirmed the revocation of eight additional licenses related to Huawei since the start of 2024. This action reflects heightened scrutiny and tightening restrictions on technological exchanges with Huawei, perceived as a national security concern by Washington.
Huawei, Qualcomm, and Intel did not immediately respond to requests for comment, underscoring the sensitive nature of the issue amidst geopolitical tensions.
The US government's measures coincide with congressional pressure to intensify scrutiny on Huawei, amid concerns over its close ties to the Chinese government and potential security risks, which Huawei denies vehemently.
The revocations also follow Huawei's strategic maneuvers to circumvent US restrictions, such as partnering with Chinese chipmaker SMIC to develop advanced smartphone components, despite export limitations. This strategy has contributed to Huawei's recent sales spike in smartphones and growth in its smart car component business.
Since its placement on a US trade restriction list in 2019, Huawei has been required to obtain difficult-to-obtain licenses for suppliers to ship goods. Despite this, the Trump administration had allowed extensive licensing, including for items beyond typical restrictions for listed entities.
According to the Commerce Department's document, recent license approvals for Huawei included a wide array of goods like exercise equipment, office furniture, and consumer electronics components, indicating a broad scope of permitted exports.
From 2018 to 2023, the Commerce Department approved licenses totaling $335 billion out of $880 billion in applications for sales to Chinese entities on the entity list. Notably, $222 billion of these approvals were granted in 2021, marking a significant policy shift under the Biden administration's first year.
These developments underscore ongoing US efforts to recalibrate export policies regarding Huawei, amidst broader geopolitical tensions and concerns over technology transfer and national security implications.
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