U.S. Government suspends export licenses for Huawei

The U.S. Government intends to suspend the issuance of export licenses to companies doing business with the Chinese corporation Huawei and its subsidiaries. As a result, Huawei will be cut off from U.S. technologies.

The U.S. Department of Commerce has placed Huawei and all its subsidiaries on a list to prevent the company from producing new products with U.S. technology. Subsequently, they began requesting export licenses from companies shipping those technologies to Huawei. However, these licenses were approved, resulting in the delivery of U.S.-made items to Huawei and its subsidiaries.

Suppression of licenses

Although some U.S. companies have obtained licenses to sell specific products and technologies to Huawei. However, the company faces restrictions
to exporting 5G equipment and other technologies. For example, Qualcomm Inc. received authorization to supply Huawei with 4G chips for smartphones three years ago. However, the cutting-edge technologies they need for 5G networks are not being sold to Huawei or its subsidiaries.

However, the company acquired chips for various consumer electronics products, such as smartphones and personal computers, which allowed it to stay in business. But that will soon change, as the U.S. Department of Commerce’s Bureau of Industry and Security has informed companies that it will stop granting Huawei export licenses for U.S. technology.

To determine what action the U.S. should take next, Alan Estevez, director of the Bureau of Industry and Security, is now analyzing Chinese export regulations.

Tougher on China

That ban came when Huawei tried to get back on track after 2021, in which U.S. sanctions caused a significant drop in revenue. The Chinese corporation’s sales then plummeted by almost a third.

In recent months, Biden has taken an even tougher stance against China. In October, the U.S. imposed broad sanctions on its semiconductor and supercomputer industries to prevent China from developing its military capabilities. However, these measures will also impede China’s scientific and economic development. More than its military capabilities, such as nuclear weapons or hypersonic missiles, the Chinese economy; is affected by the application of new sanctions on Huawei.

The U.S. government has imposed new restrictions on the export and installation of wafer certification in China.

In addition, in a pact with Japan and the Netherlands, the United States limits exports from companies such as Canon, Tokyo Electron, and Nikon. To ensure that companies like SMIC do not have access to state-of-the-art manufacturing facilities.

Some believe that Chinese wafer certification technology can develop faster, but it will be challenging; without the technology developed in the United States.

Chinese Foreign Ministry spokesman Mao Ning stated:

“China opposes the United States abusing an overly broad notion of national security to crack down on Chinese enterprises.”

Header: Huawei