Expiration of licenses to export equipment to Huawei
The United States stopped granting Huawei export licenses to American companies and they are even considering a complete ban on the sale of American technologies to the Chinese giant.
Huawei has been blacklisted since 2019
Against the backdrop of the trade war, the Trump administration decided to blacklist Huawei in 2019 as a threat to the country’s national security. Since then, US suppliers must obtain government approval in the form of a license to sell equipment to a Chinese company.
Therefore, American companies continue to export equipment to Huawei ; That’s especially true of Intel and AMD, which supply it with the processors it uses in its Mate laptops, and Qualcomm, which sells it chips and modems for its now-diminished smartphone range.
But the government wants to put an end to it. according to Financial Times, The Commerce Department said it would no longer grant licenses to groups seeking to export US technology to Huawei.
Washington raises his voice
This decision is made in a certain context, when The Biden administration is taking steps to block China’s access to American technology, especially those at the top. Semiconductor exports to the Middle Kingdom were severely restricted in October, and last week the US reached an agreement with Japan and the Netherlands to further restrict exports of state-of-the-art semiconductor manufacturing equipment to the Asian country.
The timing of this new measure is not insignificant. After long, very difficult months, Huawei is starting to see the light at the end of the tunnel. Revenues for 2022 remained stable after a sharp decline and the company expects 2023 to be the year it returns” Current affairs ».
Indeed, Huawei was able to bounce back and diversify to counter US sanctions. It has especially appealed to companies and government departments, especially in China, and has developed cloud computing activities. Huawei will also support projects aimed at creating an import-free semiconductor supply chain in its home country. Efforts that Washington did not view favorably, especially since the export of American technologies to the company allowed it not to collapse completely.
Negative consequences for both parties
Analysts believe that it is too early to assess the impact of the latest measures on Huawei. ” An indefinite general shutdown would certainly be disastrous for Huaweibut the result of any other measurement may be very different said a legal expert dealing with export license applications.
As for American companies, some may disagree with the government’s decision… Indeed, it is likely that the Commerce Department will also revoke licenses previously granted to Huawei for sales : ” This will happen It has a huge impact on the income of US suppliers for most basic semiconductors Paul Triolo, a Chinese technology expert at the Albright Stonebridge consulting company, said.
The announcement could come in May, four years after Huawei was placed on the infamous US blacklist.
The United States stopped granting Huawei export licenses to American companies and they are even considering a complete ban on the sale of American technologies to the Chinese giant.
Huawei has been blacklisted since 2019
Against the backdrop of the trade war, the Trump administration decided to blacklist Huawei in 2019 as a threat to the country’s national security. Since then, US suppliers must obtain government approval in the form of a license to sell equipment to a Chinese company.
Therefore, American companies continue to export equipment to Huawei ; That’s especially true of Intel and AMD, which supply it with the processors it uses in its Mate laptops, and Qualcomm, which sells it chips and modems for its now-diminished smartphone range.
But the government wants to put an end to it. according to Financial Times, The Commerce Department said it would no longer grant licenses to groups seeking to export US technology to Huawei.
Washington raises his voice
This decision is made in a certain context, when The Biden administration is taking steps to block China’s access to American technology, especially those at the top. Semiconductor exports to the Middle Kingdom were severely restricted in October, and last week the US reached an agreement with Japan and the Netherlands to further restrict exports of state-of-the-art semiconductor manufacturing equipment to the Asian country.
The timing of this new measure is not insignificant. After long, very difficult months, Huawei is starting to see the light at the end of the tunnel. Revenues for 2022 remained stable after a sharp decline and the company expects 2023 to be the year it returns” Current affairs ».
Indeed, Huawei was able to bounce back and diversify to counter US sanctions. It has especially appealed to companies and government departments, especially in China, and has developed cloud computing activities. Huawei will also support projects aimed at creating an import-free semiconductor supply chain in its home country. Efforts that Washington did not view favorably, especially since the export of American technologies to the company allowed it not to collapse completely.
Negative consequences for both parties
Analysts believe that it is too early to assess the impact of the latest measures on Huawei. ” An indefinite general shutdown would certainly be disastrous for Huaweibut the result of any other measurement may be very different said a legal expert dealing with export license applications.
As for American companies, some may disagree with the government’s decision… Indeed, it is likely that the Commerce Department will also revoke licenses previously granted to Huawei for sales : ” This will happen It has a huge impact on the income of US suppliers for most basic semiconductors Paul Triolo, a Chinese technology expert at the Albright Stonebridge consulting company, said.
The announcement could come in May, four years after Huawei was placed on the infamous US blacklist.
