Saturday, July 13, 2024

Report: U.S. Revokes 8 Licenses for Chinese Tech Company Huawei in 2021

U.S. Government Revokes Licenses for Huawei Suppliers in 2024

In a recent development, the U.S. government has revoked eight licenses in 2024 that allowed companies to supply products to Huawei, a Chinese tech giant. This move follows the revocation of licenses of Qualcomm and Intel earlier this year, which enabled the chipmakers to supply processors to Huawei for laptops and mobile phones.

According to Reuters, the Commerce Department has been cracking down on suppliers for Huawei, pressuring American chip equipment manufacturers and their suppliers to stop selling to the Chinese company. This pressure intensified after Huawei launched its new flagship smartphone, Mate 60 Pro, last year which raised concerns about the company’s access to critical technologies amid a U.S. ban.

The recent crackdown on Huawei suppliers comes amid pressure from Republican China hardliners in Congress to restrict the company’s activities following its resurgence in the market. Huawei suppliers had received licenses worth billions of dollars under a policy implemented during the Trump administration, allowing a larger list of items to flow to the company compared to other entity-listed companies.

The document prepared by the Commerce Department also revealed that between 2018 and 2023, the agency approved $335 billion worth of licenses for Chinese firms on the entity list, out of a total of $880 billion in applications. In 2021, during President Biden’s first year in office, $222 billion worth of licenses were approved out of $560 billion in applications received that year.

This crackdown on Huawei suppliers reflects the ongoing tensions between the U.S. and China in the tech industry, with the U.S. government taking steps to limit the flow of critical technologies to Chinese companies like Huawei. The implications of these actions on the global tech market remain to be seen as the situation continues to unfold.

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