Will the US Ban Technology Sales to Huawei?
The US government, under President Biden’s administration, has reportedly suspended the issuance of export licenses to Chinese telecom giant Huawei, leading to concerns of a potential ban on technology sales. Export restrictions on the sale of US technology to China have been in place for an extended period, and now there is a growing risk of further tightening these measures.
According to multiple news sources, including the Financial Times, American companies‘ licenses to export to Huawei have been suspended by the government in Washington. This development has raised deep concerns in China, with a spokesperson for the Chinese Foreign Ministry stating that they are closely following the situation. The United States had already imposed new restrictions on China in October, including export controls on semiconductor technology, to prevent the Chinese military from modernizing.
Huawei, known as the world’s largest telecom equipment provider, has faced US export restrictions on 5G networks and other technologies for several years. However, the US Department of Commerce has continued to grant licenses to some US companies, allowing them to sell specific goods and technologies to Huawei. For instance, Qualcomm obtained permission to sell 4G smartphone chips to Huawei in 2020, while Intel also received export licenses for technology not related to 5G.
Now, there are indications that the US intends to impose a ban on the shipment of products to Huawei even below the 5G level. This would include technologies related to the 4G mobile communications standard, as well as Wifi 6 and 7, artificial intelligence, high-performance computers, and cloud elements.
This move by the US follows the blacklisting of Huawei in 2019, which prohibits most US companies from supplying goods and technologies to the Chinese company unless they obtain licenses. Huawei’s total revenue for the previous year reached $91.53 billion, slightly lower than in 2020 when US sanctions caused a nearly one-third drop in sales.
The US has long accused Huawei of having close ties with Chinese authorities and has raised concerns about espionage and sabotage. However, Huawei has vehemently denied these allegations.
The potential ban on technology sales to Huawei signifies a significant escalation in the ongoing tensions between the US and China. It remains to be seen how this situation will unfold and what impact it will have on the global technology landscape.
References:
– Financial Times: [link]
– US Department of Commerce: [link]
– Huawei: [link]
