Written by Alexandra Alper
- As first reported by Reuters, the Commerce Department, which is in charge of U.S. export policy, said in May that it had canceled “certain” licenses. However, it did not disclose the identity or quantity of suppliers that were affected. Reuters reported at the time that Qualcomm (NASDAQ: QCOM) and Intel (NASDAQ: INTC) licenses were among those canceled.
- The paper was written in response to a request for information from Republican Congressman Michael McCaul. “Since the beginning of 2024, (the Commerce Department) has revoked eight additional licenses involving Huawei,” the department said.
- “Exercise equipment and office furniture and low-technology components for consumer mass-market items, such as touchpad and touchscreen sensors for tablets,” which are widely available in China from Chinese and foreign sources, are among the license approvals for Huawei, according to the document. The Commerce Department said.
- Requests for comments were not answered by Huawei or Qualcomm. Intel opted not to respond. A representative for McCaul’s House Foreign Affairs Committee said the information was received on Tuesday and is now being examined.
- The information throws further insight into the steps the Biden administration is trying to counter Huawei, which has begun to recover despite Washington’s attempts to destroy it for national security reasons. It is not a security concern, according to Huawei.
- Additionally, it coincides with efforts by Republican hardliners in Congress who support China to undermine the firm, which startled the industry in August of last year by releasing a new phone that included a sophisticated processor made by SMIC, a Chinese chipmaker, in contravention of U.S. export prohibitions on both businesses.
- The phone contributed to a 64% year-over-year increase in Huawei smartphone sales in the first half of 2024, according to research company Counterpoint. Huawei’s recovery has also been aided by its smart vehicle component business, which saw the firm post its strongest sales rise in four years in 2023.
- A set of trade restrictions was put in place by the US in 2019 because of concerns that Huawei would spy on citizens. Having their names added to the list requires the company’s suppliers to apply for a unique, hard-to-get license before shipment.
- However, Huawei suppliers have been granted licenses valued at billions of dollars to market Huawei products and technology, all because of a Trump administration decision that made it possible for a much wider range of goods to reach the company than is customary for an entity-listed business.
- According to the report, the agency granted licenses totaling $335 billion to Chinese parties on the entity list between 2018 and 2023, out of a total of $880 billion in applications. Out of the $560 billion in applications submitted that year, $222 billion worth of those approvals occurred in 2021—Biden’s first year in office, the agency said.
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