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Huawei Faces Harsh Reality as U.S. Revokes Export Licenses

Three people with knowledge of the situation say that the Biden administration has stopped giving Huawei Export Licenses.

U.S. export restrictions on Huawei’s 5G and other technology-related products have been in place for a while. However, U.S.  businesses received authorization from the Department of Commerce to sell goods and technologies to the company. In 2020, Qualcomm will be able to sell Huawei 4G smartphone chips.

A Commerce Department spokesperson said officials “continually assess our policies and regulations.” But they do not comment on talks with specific companies. Both Huawei and Qualcomm said they couldn’t comment. The move was first reported by Bloomberg and the Financial Times.

One person with knowledge of the situation said that U.S. officials are making a new formal policy. Its mainly about not shipping items to Huawei. This policy would include items below the 5G level, such as 4G, Wi-Fi 6 and 7, AI, high-performance computing, and cloud items.

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A second source added that the change was a reflection of the Biden administration’s tougher stance on Huawei over the past 12 months. The person claimed that Huawei Export licenses for 4G chips are not usable for 5G. However, there’s a chance Huawei received approval only to get rejected later. Officials granted licenses for 4G-specific items late in the Trump administration and early in the Biden administration.

Enterprise and government contracts, particularly in China, as well as the company’s burgeoning cloud computing division, ensured the firm’s continued existence. The fact that the US still permitted some exports to Huawei also played a role in preventing a total collapse. There is speculation that Huawei is funding initiatives in China that are working to create a semiconductor supply chain. It would be independent of imports, something that the United States government has recently begun to target.

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