Daily Management Review

US Stops Issuing Export Permits To Chinese Tech Giant Huawei - Reports


According to three persons with knowledge of the situation, the Biden administration has ceased accepting permits for American businesses to sell the majority of their goods to China's Huawei.
For several years, Huawei has been subject to U.S. export prohibitions on products related to 5G and other technology, although representatives from the U.S. Department of Commerce have given some American companies permits to sell Huawei specific products and services. In 2020, Huawei will be able to purchase 4G smartphone chips from Qualcomm Inc.
Officials at the Commerce Department "continually examine our policies and regulations," according to a spokesperson, but they decline to comment on specific company discussions. Both Qualcomm and Huawei declined to comment. Earlier reports on the change came from Bloomberg and the Financial Times.
According to a source with knowledge of the situation, U.S. officials are developing a new formal policy of denial for shipments to Huawei that would cover products below the 5G standard, such as 4G products, Wifi 6 and 7 products, artificial intelligence products, high-performance computing and cloud products.
Another insider stated that the action was anticipated to reflect the Biden administration's recent tightening of policies on Huawei. The insider claimed that licences for 4G chips that couldn't be utilised for 5G, which may have been issued earlier, were being rejected. It was nevertheless common for officials to give permits for products specifically for 4G applications until the end of the Trump administration and early in the Biden administration.
When Huawei was added to a trade blacklist by American officials in 2019, the majority of American suppliers were prohibited from sending products and technology to the corporation unless they had permits. Officials kept tightening the restrictions to prevent Huawei from purchasing or designing the semiconductor chips that power the majority of its products.
However, American regulators issued Huawei with permissions that permitted it to purchase some goods. For instance, Huawei's suppliers received licences worth $61 billion to sell to the multinational manufacturer of telecom equipment from April through November 2021.
Huawei reported its overall revenue in December to be roughly $91.53 billion, a modest decrease from 2021 when U.S. sanctions drove its sales to drop by about a third.