In Short:
The Biden administration has revoked eight licenses that allowed companies to ship goods to Huawei, a Chinese telecoms giant, in an effort to pressure the company. Qualcomm and Intel were among the suppliers impacted by the revocations. The move comes as Huawei rebounds despite U.S. efforts to restrict it on national security grounds. Huawei was placed on a U.S. trade restriction list in 2019 over spying fears.
Biden Administration Revokes Eight Licenses Allowing Shipments to Huawei
By Alexandra Alper
The Biden administration has revoked eight licenses this year that had allowed some companies to ship goods to Chinese telecoms equipment giant Huawei, according to a document seen by Reuters. The Commerce Department, which oversees U.S. export policy, confirmed the revocation of these licenses in response to an inquiry by Republican Congressman Michael McCaul.
Measures to Thwart Huawei Resurgence
The details shed new light on measures the Biden administration is taking to thwart Huawei, as the company has started to rebound despite Washington’s efforts to cripple it on national security grounds. This action comes amid pressure from Republican China hardliners in Congress to further restrict the company.
Impact on Huawei’s Growth
In recent times, Huawei has witnessed a spike in smartphone sales and revenue, partially driven by its smart car component business. Despite being placed on a U.S. trade restriction list in 2019 due to espionage concerns, Huawei suppliers have received billions of dollars’ worth of licenses to sell goods and technology to the company.
License Approvals and Trade Statistics
(The Commerce Department) approved $335 billion worth of licenses to Chinese parties on the entity list from 2018 to 2023, out of $880 billion in total applications. Notably, $222 billion worth of approvals came in 2021, Biden’s first year in office, out of $560 billion in applications received that year.
