US Said to Stop Granting Export Licences for 4G 16j1v AI, Wi-Fi, Cloud Technology for China's Huawei: All Details

US officials are said to be creating a new formal policy of denial for shipping items to Huawei that would include items below the 5G level. 4ta20

By Reuters | Updated: 31 January 2023 10:03 IST

US Said to Stop Granting Export Licences for 4G, AI, Wi-Fi, Cloud Technology for China's Huawei: All Details

Photo Credit: Reuters 3v6d2p

Qualcomm, in 2020, received permission to sell 4G smartphone chips to Huawei

Highlights

Huawei was placed on a trade blacklist in 2019 by American officials
Officials granted licenses that allowed Huawei to receive some products
Huawei said its overall revenue was about $91.53 billion, in December

ment

The Biden istration has stopped approving licenses for US companies to export most items to China's Huawei, according to three people familiar with the matter.

Qualcomm, in 2020, received permission to sell 4G smartphone chips to Huawei.

A Commerce Department spokesperson said officials "continually assess our policies and regulations" but do not comment on talks with specific companies. Huawei and Qualcomm declined to comment. Bloomberg and the Financial Times earlier reported the move.

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One person familiar with the matter said US officials are creating a new formal policy of denial for shipping items to Huawei that would include items below the 5G level, including 4G items, Wi-Fi 6 and 7, artificial intelligence, and high-performance computing and cloud items.

Another person said the move was expected to reflect the Biden istration's tightening of policy on Huawei over the past year. Licenses for 4G chips that could not be used for 5G, which might have been approved earlier, were being denied, the person said. Toward the end of the Trump istration and early in the Biden istration, officials had still granted licenses for items specific to 4G applications.

American officials placed Huawei on a trade blacklist in 2019 restricting most US suppliers from shipping goods and technology to the company unless they were granted licenses. Officials continued to tighten the controls to cut off Huawei's ability to buy or design the semiconductor chips that power most of its products.

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But US officials granted licenses that allowed Huawei to receive some products. For example, suppliers to Huawei got licenses worth $61 billion (roughly Rs. 5 lakh crore) to sell to the telecoms equipment giant from April through November 2021.

In December, Huawei said its overall revenue was about $91.53 billion (roughly Rs. 7.5 lakh crore), down only slightly from 2021 when US sanctions caused its sales to fall by nearly a third.

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