In 2024, the Biden administration revoked eight more licenses that previously allowed U.S. companies to supply goods to Chinese telecom giant Huawei, aiming to increase pressure on the company.
This action follows earlier revocations, including licenses for major suppliers like Qualcomm and Intel. The Commerce Department confirmed these steps in response to an inquiry by Republican Congressman Michael McCaul, underscoring ongoing efforts to restrict Huawei due to national security concerns.
Huawei, which denies posing any security risk, has been resilient despite these restrictions, witnessing a significant rebound. In August, the company surprised the industry with a new smartphone powered by a chip from Chinese manufacturer SMIC, despite U.S. export limits.
This new phone contributed to a 64% increase in Huawei’s smartphone sales in early 2024. Additionally, Huawei’s smart car component business boosted its revenue growth in 2023, marking its fastest rise in four years.
Huawei was added to the U.S. trade restriction list in 2019 over espionage fears, requiring suppliers to obtain special licenses to export to the company. While the Trump administration allowed licenses worth billions of dollars for Huawei suppliers, the Biden administration’s recent actions indicate a tighter stance on exports to the firm.
Source: Reuters