Huawei has faced U.S. export restrictions around items for
5G and other technologies for several years, but officials in the U.S.
Department of Commerce have granted licenses for some American firms to sell
certain goods and technologies to the company. 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.
One person familiar with the matter said U.S. 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 administration’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 administration and early in the Biden administration, officials had still
granted licenses for items specific to 4G applications.
American officials placed Huawei on a trade blacklist in
2019 restricting most U.S. 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.
But U.S. officials granted licenses that allowed Huawei to
receive some products. For example, suppliers to Huawei got licenses worth $61
billion to sell to the telecoms equipment giant from April through November
2021.
In December, Huawei said its overall revenue was about
$91.53 billion, down only slightly from 2021 when U.S. sanctions caused its
sales to fall by nearly a third.
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