America stops granting export licenses to Huawei

Huawei : Reuters reported on Tuesday that the Biden administration will no longer agree to grant US companies licenses that allow them to export items to Huawei.

The Chinese telecoms equipment giant has for years faced restrictions on US exports of components used in the development of 5G networks and other technologies, but officials in the US Commerce Department have been allowing some US companies to sell certain goods and technologies to the company. In 2020, Qualcomm obtained permission to sell fourth-generation (4G) chipsets to Huawei.

Reuters quoted an informed source as saying that US officials are developing a new official policy to refuse to export items to Huawei, which will include what is less than the elements of the fifth generation networks, including: elements of the fourth generation networks, Wi-Fi 6 networks, artificial intelligence, high-performance computing, and elements Cloud Computing.

The agency quoted another source as saying that the move was expected after the Biden administration tightened its policy towards Huawei over the past year. The source said licenses for 4G chipsets, which cannot be used for 5G networks and may have been approved by officials earlier, have now been denied.

In 2019, US officials placed Huawei on the trade blacklist, which prohibits US companies from exporting goods and technology to the company unless they obtain a license to do so. Officials continued to tighten controls to deny Huawei the purchase or design of the semiconductor chips that power most of its products.

But US officials granted licenses that allowed Huawei to receive some products. For example, Huawei suppliers obtained licenses worth $61 billion to sell to the Chinese company from April to November 2021.

Last December, Huawei said that its total revenue for the year 2022 amounted to about 91.53 billion US dollars, a slight decrease from 2021, when US sanctions caused its sales to drop by about a third.

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